No China power plant for GDF Suez until prices clear: CEO

20th December 2010, Comments 0 comments

French energy group GDF Suez will only enter the Chinese electricity generation market when there is clarity on the setting of power prices, the company's chief executive said Monday.

"We'll go into China and build and operate electric power stations, whether they are hydro or hydro or nuclear, when the conditions permit," CEO Gerard Mestrallet was quoted as saying in the La Tribune daily.

"That's to say, when the method of fixing the sale price of electricity can be determined, in an irrevocable manner, over a very long term," he said. "That isn't currently the case."

Mestrallet said that several years ago he had declined a proposal from the city of Shanghai to become the first foreign energy company to build a gas-fired electricity plant.

In October, a Belgian consortium including a unit of GDF Suez signed a framework agreement with Beijing to make nuclear fuel in China for civil power generation.

GDF Suez, which is very active in China in the environment and waste sectors, has hopes of entering the energy sector as well, and signed an agreement to supply Beijing 2.6 million tonnes of liquified natural gas between 2013 and 2016.

© 2010 AFP

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