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

KEPCO Engineering & Construction Co

05/04/2017 09:40

* S.Korea state utility seen likeliest NuGen suitor 
    * KEPCO in talks, but needs "considerable time" -source 
    * Up to NuGen group to determine partner - British minister 
    * Britain, Toshiba seek to accelerate chase for deal 
 
 (Adds British minister, KEPCO spokesman comments) 
    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 was enhanced this week by troubled 
Japanese group Toshiba Corp  6502.T  having to take on full 
ownership of the NuGen project after France's Engie  ENGIE.PA  
backed out. Strapped for cash, Toshiba needs a sale. 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 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. 
    At a briefing in Seoul on Wednesday, Britain's Clark offered 
no evidence of concrete progress in negotiations with KEPCO. The 
minister said he had travelled for talks with KEPCO and energy 
ministry officials in order to deepen relationships, but said 
the choice of a partner is for NuGen to decide, not the British 
government. 
    "It would be a positive partnership that we feel that the UK 
and Korea can have in nuclear, but on the particular project of 
Moorside, that is for the developers to make a proposal," Clark 
said.  
    A KEPCO spokesman said the firm will make its position clear 
once it has reviewed terms and conditions of any potential 
investment carefully. 
    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; Editing by Kenneth Maxwell) 
 ((clara.ferreira-marques@thomsonreuters.com; +65 6870 3153;)) 
 
Keywords: SOUTHKOREA BRITAIN/NUCLEARPOWER