Greek Terna Mulls Gas-Fired Thermal Plant in Serbia, Natsis Says

Terna SA, the Greek builder with a portfolio ranging from highways to power plants, is interested in building a 400 million-euro ($522 million) gas-fired thermal electricity plant in Serbia.

Terna wants to initiate talks with Serbia’s energy regulator, power company Elektroprivreda Srbije JP and gas monopoly Srbijagas JP, on the project, which could be operational in three years, Stathis Natsis, Terna’s executive director for overseas business, told Bloomberg in an interview during a business forum in Kopaonik, Serbia.

“We would be interested in a power plant of between 350 and 500 megawatts, which is a mid-sized plant,” Natsis said yesterday.

Serbia expects supplies to expand as the country builds a route to join the South Stream pipeline to transport gas from Russia, along the Black Sea floor to Bulgaria and across the Balkans to central Europe. Serbia plans to double purchases from Russia’s Gazprom OAO (GAZP) to 5 billion cubic meters a year through 2021 from 2 billion cubic meters.

The Greek company is ready to discuss “as soon as possible” various options including a partnership with EPS or agreement with the power company to buy all electricity produced at the new plant, Natsis said.

“We do have the idea and we do see an opportunity because there is demand,” he said. “Over one or two months we will find out, we will understand whether we will go ahead.”

Serbia wants to become self-sufficient in electricity production by 2015 by adding some 2,000 megawatts of new capacity, including coal-fired plants, while attracting investments in new hydro plants, wind and solar parks.

To contact the reporter on this story: Gordana Filipovic in Belgrade at gfilipovic@bloomberg.net

To contact the editor responsible for this story: James M. Gomez at jagomez@bloomberg.net

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