ECONOMY

GEK Terna forges alliance with Qatar Petroleum

Greek construction and energy group GEK Terna agreed on Monday to forge a strategic alliance with Qatar Petroleum International (QPI), the investment arm of Qatar Petroleum.

The first object of the agreement for now concerns the acquisition by QPI of a 25 percent stake GEK Terna owns in the Eron II power production unit, which operates on natural gas. GEK Terna holds a 50 percent stake in the plant, with the rest belonging to French group GdF Suez.

The price of the deal comes to 44.2 million euros and constitutes the first investment by Qatar in Greece as well as QPI’s first international holding in the electricity production sector.

In a statement issued on Monday, Qatar Petroleum expressed satisfaction with the agreement, stressing the phrase “strategic alliance.” The two groups are expected to look into the possibility of a joint realization of investments not only in Greece but also in the broader region of Southeastern Europe. In its own statement, GEK Terna spoke of “a vote of confidence by Qatar in the prospects of the Greek energy market and the Greek economy in general.”