E.ON and Batista consider joint gas venture in Brazil

E.ON (EONGn.DE), Germany’s top utility, may join forces with Eike Batista to produce gas in northern Brazil after companies owned by the Brazilian billionaire found significant amounts of gas in the region.

“We will look at Eike Batista’s invitation to see whether we can work together on this field as well as an additional activity,” Financial Times Deutschland quoted E.ON Chief Executive Johannes Teyssen as saying in its Monday edition.

Earlier this year, E.ON said it would team up with Batista to build the largest privately-held network of power plants in Brazil, as it bets on emerging markets amid stagnant growth in Europe.

As part of the deal, it paid $452m for a 10 per cent stake in Batista-controlled MPX Energia (MPXE3.SA), while MPX would benefit from E.ON’s expertise in renewable energy.

Teyssen told FT Deutschland the gas in northern Brazil would be turned into power by a plant in the region that E.ON and MPX are set to build, adding contracts were signed in Duesseldorf, Germany last week, reports Reuters.

At this point, the plans do not involve nuclear power.

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