UAE nuclear entity, Korea Electric Power sign joint venture

A government controlled energy firm of the United Arab Emirates (UAE) and a South Korean power company agreed on Thursday to cooperate on the UAE's civil nuclear energy program.

The Emirates Nuclear Energy Corporation (ENEC) and the Korea Electric Power Corporation (KEPCO) signed a joint venture agreement in Abu Dhabi, the firms said in an emailed statement.

With the signing of the document, ENEC and KEPCO have established a new, long-term partnership to jointly capitalize on KEPCO's 40-plus years of nuclear experience for the benefit of the Barakah project, the statement said.

KEPCO is the prime contractor for the UAE's 20 U.S. billion dollar Barakah Nuclear Energy Plant, currently under construction in the Western Region of the UAE capital.

The two companies, which have started cooperation since since 2009, also announced the establishment of Barakah One PJSC, an independent subsidiary owned by both companies.

Barakah One PJSC will represent the commercial and financial interests of the Barakah project. KEPCO will take an 18 percent stake in Barakah One, with ENEC as the majority owner of the remaining 82 percent.

Construction of Barakah nuclear energy plants, which started in 2012, is expected to complete in 2020, the target year for the UAE to elevate the share of nuclear power to at least 25 percent of total energy needs.

The UAE, a major oil supplier, is now almost fully reliant on natural gas to produce electricity. Endit