Poland's PGE in preliminary agreement to buy assets from ZE PAK (updated)

PGE Polska Grupa Energetyczna SA

23/01/2025 13:33

(Adds context, detail, share price reaction)
       GDANSK, Jan 23 (Reuters) - Poland's largest power
producer PGE  PGE.WA  has struck a preliminary agreement to
potentially buy gas-fired power plant project PAK CCGT from
power plant operator ZE PAK  ZEEP.WA , PGE said on Thursday.
    The preliminary deal also outlined plans for PGE to buy ZE
PAK's 50% stake in their PGE PAK Energia Jadrowa joint venture,
which is working on a nuclear power plant project in central
Poland's Konin region, PGE said.
    Under the agreement, the parties have agreed the basis of
terms of a potential transaction and PGE has been granted
exclusive status to negotiate a deal until the end of June.
    No financial terms were disclosed. 
    At 1325 GMT, ZE PAK shares were up 21% at their highest
since early October. PGE shares were up 1.2%. 
    Polish utilities are expanding gas-fired power capacity as
coal power generation loses profitability due to the cost of
carbon emission allowances and rising renewable output.
    State-controlled PGE last year launched 1.4 gigawatts of
gas-fired power capacity, replacing aging coal-fired generators
at its Dolna Odra power plant. It is also building a
882-megawatt (MW) unit in southern Poland that will replace
coal-fed generators. ZE PAK is building a 600 MW gas generator
in central Poland. 
    ZE PAK, PGE and Korea Hydro & Nuclear Power agreed in 2022
to work on developing four 1,400 MW nuclear reactors in Patnow,
central Poland, using South Korean technology, but the project
has been on hold since Polish elections in 2023. 

 (Reporting by Rafal W. Nowak and Marek Strzelecki. Editing by
David Goodman and Mark Potter)
 ((RafalWojciech.Nowak@thomsonreuters.com; +48 58 769 66 63;))