Hungary's MVM to join RWE in 800 mln euro project

BUDAPEST, June 25 (Reuters) - Hungarian power wholesaler MVM plans to join German utility RWE (RWEG.DE) in a project worth 800 million euros ($1.24 billion) to expand capacity at RWE's plant in northern Hungary, national daily Nepszabadsag reported.

The paper, citing MVM Chief Executive Imre Martha, said MVM was planning a joint venture with RWE to finance the project which would boost capacity at the coal-fired Matrai Eromu by 440 MW, or 50 percent, by 2013.

RWE has a 50.92 percent stake in Matrai Eromu, while state-owned MVM holds 25.51 percent.

The paper said MVM sought a majority stake in the joint venture.

Matrai Eromu, the second-biggest power generator after a 1,860-megawatt nuclear power plant in Paks, would neither confirm nor deny the report, the paper said.

If completed, the capacity expansion would coincide with the completion of a 2,400 megawatt gas-fuelled power plant, the biggest in Hungary, planned by gas wholesaler Emfesz.

That project is worth an estimated 1.5 billion euros. (Reporting by Gergely Szakacs)