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MOL-CEZ JV signs contract on construction of €600m power plant

MOL-CEZ European Power Hungary, a joint venture of Hungarian oil and gas company MOL and Czech peer CEZ, signed a contract on Thursday with Tecnicas Reunidas on the construction of a €600m combined cycle gas turbine power plant (CCGT) at MOL's refinery in Százhalombatta, MOL said.

The JV also signed a long-term service agreement for the 860 MW plant, south of Budapest, with Siemens.

MOL-CEZ European Power Hungary has all of the necessary permits for the start of construction of the plant.

The first phase of the investment will start in October, while the second phase -- "subject to an additional investment decision of MOL and CEZ" -- is expected to begin at the end of the first half of 2012. The plant is expected to start commercial operation in Q1 2015.

MOL announced early in September the JV had begun preparations for the plant.