Korea's KEPCO cautious as Britain hunts partner for crucial nuclear project -sources

KEPCO Engineering & Construction Co

05/04/2017 06:16

* S.Korea state utility seen likeliest NuGen suitor 
    * KEPCO in talks, but needs "considerable time" -source 
    * Britain, Toshiba seek to accelerate chase for deal 
 
    By Jane Chung 
    SEOUL, April 5 (Reuters) - As Britain steps up the hunt for 
a new partner for a stalled nuclear power project, South Korea's 
KEPCO remains the most likely suitor, but two people with direct 
knowledge of the matter said the giant utility won't be rushed 
to the altar. 
    With British business minister Greg Clark in Seoul for 
talks, the status of KEPCO - Korea Electric Power Corp (KEPCO) 
 015760.KS  - as likely buyer has been enhanced this week by 
troubled Japanese conglomerate Toshiba Corp  6502.T  having to 
take on full ownership of the NuGen project after France's Engie 
 ENGIE.PA  backed.  urn:newsml:reuters.com:*:nL3N1HC1WK  
    One of few utilities to retain global nuclear ambitions, 
KEPCO said last month that it was in talks over a potential 
stake purchase in NuGen, a three-reactor, up-to-3,800 megawatt 
project in northwest England that London needs on stream in 2025 
to meet projected power demand, but has suffered significant 
setbacks since it was set up in 2010. 
    But while both Britain and cash-strapped Toshiba seek to 
accelerate progress towards a deal, state-owned KEPCO will not 
be able to move faster, the people with direct knowledge of the 
matter said on Wednesday. They declined to be identified because 
they were not authorised to discuss the matter publicly. 
    "Both Britain and Toshiba, they seem to be in a greater 
hurry than we thought and pushing KEPCO. In fact, it requires 
considerable time to review a project, so it is not a matter 
that can be done hastily," one of the people said. 
    British minister Clark is due to brief Korean press later on 
Wednesday on progress in contacts. 
    Toshiba's U.S. nuclear construction arm Westinghouse filed 
for bankruptcy last week, and the company is selling a majority 
stake in its prized memory chips business to raise cash. 
    One key issue for KEPCO will be the technology used for the 
Moorside project - Toshiba's AP1000 reactor, as planned, or its 
own APR1400. While Toshiba previously received the green light 
from Britain for the Westinghouse design, KEPCO could make 
approval for its own technology that a condition. 
    "KEPCO is working and studying hard which type of nuclear 
reactors would suit better for them, given the current market 
situation," the second person with knowledge of the matter said. 
    Using KEPCO's own reactors could "give a better reason to 
join the project", the person said. 
 
 (Reporting by Jane Chung in SEOUL; Editing by Kenneth Maxwell) 
 ((clara.ferreira-marques@thomsonreuters.com; +65 6870 3153;)) 
 
Keywords: SOUTHKOREA BRITAIN/NUCLEARPOWER