Gazprom interested in Turkish electricity

ISTANBUL - Reuters

This file picture shows a general view of the headquarters of Russia’s oil an gas giant Gazprom in central Moscow. AFP photo

Russia’s energy giant Gazprom is ready to enter Turkey’s electricity grids market, a problematic field of privatization due to financial problems of local players, according to a top official.

The company is in touch with Turkish companies for cooperation, Gazprom executive board vice chairman and and Gazprom Exports Alexander Medvedev told the Gas & Power magazine.

“We are ready to enter Turkey’s electricity market not only as a supplier but also an investor,” Medvedev said.

Commenting on Turkey’s state-run pipeline company Botaş’s recent decision to cancel an annually 6 billion cubic square natural gas deal, Medvedev said Turkey needed Russian gas. Gazprom will discuss the method of importing natural gas Turkey during a meeting with officials this month.

The Turkish authorities had earlier said that private companies were free to bargain with Russia on importing gas via the North Stream pipeline.

Gazprom has received 12 new applies from Turkish companies in addition to current importers, Medvedev told the magazine “Still, it is not clear that what kind of a procedure will be followed. What is important for us that the new customers represent end-users. We do not need any new suppliers.”

The Russian representative also criticized the pricing structure in Turkey: “The prices should base on free market, not ones that were artificially determined.”

Gazprom buys out Envacom

Gazprom also said yesterday it had acquired Envacom, a German energy and telecommunications firm, giving the Russian gas export monopoly a foothold in the power market of Europe’s largest economy.

Gazprom bought 100 percent of Envacom, which was founded in 1999 and has 500,000 customers, in a friendly deal. Envacom’s telecoms business will be carved out and remain under the sole ownership and control of previous owner Tillman Raith.

Gazprom said the new entity will be called Gazprom Marketing and Trading Retail Germania GmbH, and will market its products and services as Gazprom Energy.

Gazprom did not disclose the value of the deal.