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Romania's Nuclearelectrica extends talks with China's CGN for new NPP units

Romania's Nuclearelectrica extends talks with China's CGN for new NPP units Author: Nuclearelectrica Licence: All Rights Reserved.

BUCHAREST (Romania), July 21 (SeeNews) - Nuclearelectrica [BSE:SNN], the operator of Romania's sole nuclear power plant (NPP) Cernavoda, said on Thursday it has extended negotiations with China General Nuclear Corporation (CGN) for the construction of reactors 3 and 4 until end-August.

The agreement regarding negotiations extension also includes the possibility of each party to cease the memorandum of understanding without any compensations in case an agreement is not reached by end-August, the company said in a bourse filing.

In December, Nuclearelectrica said it expects to set up a joint venture with CGN in 2016 and begin construction of a pair of new units at the plant, then estimated at 6 billion euro ($6.5 billion), in two to three years.

Under the memorandum of understanding on the project, the Chinese investor will hold at least 51% of the joint venture company, while Nuclearelectrica will hold at least 30%.

The Cernavoda NPP already operates two CANDU 6 nuclear reactors of 700 MW each, which came into service in 1996 and 2007. Combined, they are the largest power producer in the country, accounting for about a fifth of Romania’s electricity supply.

Adding a second pair of similar reactors at the plant is a priority for Romania’s energy security and the project is considered the optimum solution for covering the deficit that is expected to occur after 2020. 

Nuclearelectrica's net profit rose 13% on the year in 2015 to 194.8 million lei ($48 million/ 43.5 million euro), while total revenues fell 2% to 1.75 billion lei.

Its shares were trading 0.19% up at 5.19 lei on the BVB at 1255 CET on Thursday.

(1 euro=4.4700 lei)