EuroGas Forms Polish Joint Venture with VEW and National Power

Strategic Insights -

EuroGas, Inc. has entered into an Agreement with VEW Energie AG and National Power International Limited to form a Polish joint venture company, which will develop a 150 megawatt gas-fired Combined Heating Plant in Zielona Gora, western Poland. The plant will produce both electrical and heating energy, powered by natural gas from Polish Oil and Gas and EuroGas reserves. The joint venture is owned by EuroGas (12.5%), VEW (37.5%), and National Power (50%), with construction costs estimated at up to $150,000,000. The project is expected to be a significant contributor to the local power company, EC Zielona Gora S.A.

Key Takeaways:

  • The joint venture company, owned by EuroGas (12.5%), VEW (37.5%), and National Power (50%), will develop a 150 megawatt gas-fired Combined Heating Plant in Zielona Gora, Poland.
  • The plant's construction costs are estimated at up to $150,000,000 and will produce both electrical and heating energy.
  • The plant will be powered by natural gas provided by Polish Oil and Gas and EuroGas reserves.
  • VEW's common stock trades on all major German stock exchanges, with annual revenues of $4.7 billion.
  • National Power is a wholly owned subsidiary of National Power PLC, with a worldwide generating capacity of 25,000 megawatts and annual revenues of approximately $6 billion.
  • EuroGas controls methane gas concessions in Poland and has oil and gas exploration and development joint ventures in Canada, Poland, Ukraine, the Slovak Republic, and the Sakha Republic (Yakutia).
  • EuroGas' common stock is traded on the OTC Bulletin Board and on several European stock exchanges.

Statistics:

  • Estimated construction cost of the plant: up to $150,000,000.
  • Ownership structure of the joint venture company:

+ EuroGas: 12.5%

+ VEW: 37.5%

+ National Power: 50%

  • VEW's annual revenues: $4.7 billion
  • National Power's annual revenues: approximately $6 billion
  • National Power's worldwide generating capacity: 25,000 megawatts

Sources:

  • EuroGas, Inc. ("EuroGas") (PRNewswire, Dec. 23)
  • VEW Aktiengesellschaft (PRNewswire, Dec. 23)
  • National Power PLC (PRNewswire, Dec. 23)
  • EC Zielona Gora S.A. (no date mentioned)
  • Polish Oil and Gas (no date mentioned)
  • EuroGas, Inc. annual report on Form 10-KSB (1997)