Shell and UES sign framework agreement for cooperation
26-Mar-2001
Shell gas and Power (Shell) has signed a Memorandum of
Understanding (MoU) with RAO United Energy Systems of Russia (RAO
UES) to create a one-year framework for the joint evaluation of possible
commercial ventures related to power.
UES is amongst the largest power generators in the world and operates 85
per cent of power generation in Russia. The MoU signals the start of a
relationship between Shell and RAO UES, enabling examination of a wide
range of projects in accordance with Shell’s business aspirations in the
region.
The scope of the agreement covers three main areas for evaluation: the
sharing of experience on climate change, including measurement and
reporting of gas-emissions/order_t/'>greenhouse gas emissions, emissions reduction technology
and trading systems; possible partnership in brownfield power projects for
domestic and international export markets that RAO UES may pursue and
an examination of the opportunities for joint power trading.
Anatoly Chubais, RAO UES’ Chairman of the Management Board, said: “It
is of major importance for RAO UES of Russia to co-operate with Shell in
the assessment of possibilities of implementing joint investment projects in
the Russian Federation related to the upgrading of power plants and the
introduction of new energy-saving technologies in power generation. RAO
UES and Shell will set up projects, which would be commercially viable for
all of the investors. What is also important is the agreement reached
between RAO UES and Shell in respect of co-operation in reduction of
greenhouse gas atmospheric emissions, which is a most promising
business area.”
Charles Watson, Shell Gas and Power’s Director for Russia said: “Russia
is a major resource holder with tremendous potential and experience in the
energy sector. This agreement with UES provides the framework for Shell to
take advantage of opportunities to grow its business in the region. Of great
interest to us both are the significant opportunities to co-operate in the
reduction of carbon emissions in Russia and to engage in evolving new
markets in this area.”
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