Tokyo Gas: To Buy 27% Stake In Belgium Gas Power Plant Company

Tokyo Gas Co. (9531.TO) Wednesday said it will buy a 26.66% stake in a company that operates a gas-fired power station in northern Belgium, pending approval from European Union authorities.

Japan's largest gas utility by sales volume said in a statement that it has agreed to buy 13.33% of T-Power N.V. each from Siemens Project Ventures and Tessenderlo Chemie N.V. (TESB.BT).

A spokesman at Tokyo Gas declined to specify the value of the deal.

The deal would be Tokyo Gas' third investment in an overseas power generation business. After the transaction, Siemens Project Ventures and Tessenderlo Chemie will each retain 20% in T-Power, while U.K.-based International Power PLC (IPRPY) will continue to hold 33.33%.

T-Power has been operating since June under contract from major German power group RWE AG (RWEOY). RWE is obliged to supply fuel to T-Power and purchase the electricity it generates, ensuring stable income for T-Power shareholders over the long term, Tokyo Gas said in the statement.

By Mari Iwata, Dow Jones Newswires; 813-6269-2798; [e-mail]