Reuters Summit-CEZ eyes Balkan gas projects, Turkey

(For other news from the Reuters Central European Investment Summit, click on http://www.reuters.com/summit/InvestinginEasternEurope07?pid=500)

By Jan Lopatka

VIENNA, Oct 17 (Reuters) - Czech power company CEZ <CEZPsp.PR> is considering building gas-powered power plants in Romania and Bulgaria and is leading talks to pick a partner for the Turkish market, the company's business development director said on Wednesday.

Jiri Feist told the Reuters Central European Investment Summit the company was in talks with an unnamed listed Turkish partner on joining forces for entering both production and distribution, and an announcement on the talks may come by the end of the year.

CEZ has been on an expansion trail across central and eastern Europe, trying to acquire existing or build new capacities and enter distribution networks.

"In CCGT (combined-cycle gas turbine) we are today at least in two projects, it is roughly up to 800 megawatt maximum... in Romania, and we are looking for a (offshore) wind plant there," he said.

He added CEZ was also looking at building a gas-powered station at its Bulgarian plant in Varna, on top of planned gas stations in the Czech Republic, Slovakia and Hungary.

In Turkey, CEZ is ready to join the privatisation of distribution assets, awaiting a relaunch after elections in July this year.

"We are looking to go there with a strong partner and we would like to participate in privatisation and to build up this chain of distribution and generation," Feist said.

"We are in negotiations with one of the important (players) on the Turkish market... I believe there will be an announcement before the end of the year," he said, adding the partner company was listed in Turkey.

Feist also said CEZ, central Europe's largest listed company with a market capitalisation of $39 billion, was considering taking a stake in Russia's generator TGK-4 <TGKD.MM>.

He added that talks on an alliance with Hungary's oil and gas firm MOL <MOLB.BU> were on track and could be concluded in late October or early November.

Under the deal, CEZ and MOL would jointly build gas-fired power plants at MOL's Slovak and Hungarian refineries, and CEZ would take an up to 10 percent stake in MOL.

"The works are going well, the teams are in permanent contact. We have meetings each week to monitor the situation," Feist said.

Asked when a deal could be agreed, he said: "End of October, maybe beginning of November, but I believe that we will be able to find a consensus as soon as possible."

(For summit blog: http://summitnotebook.reuters.com/)

(editing by ; Vienna newsroom)

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Keywords: CEE SUMMIT/CEZ