A venture of Czech electricity conglomerate CEZ and Hungary-based Mol Nyrt has deferred a project to construct a gas-fired power plant in Slovakia due of high gas prices.
Slovnaft spokesman Anton Molnar was quoted by Bloomberg as saying that the project has not been abandoned, but it's put on hold.
"Currently, electricity prices are low and gas prices are too high. We will start reconsidering the project when the market conditions change," Molnar added.
In 2010, the venture received government approval to build an 880MW gas-fired generating station near the Slovnaft refinery, a unit of Mol in Slovakia.
The power plant, which is estimated to cost up to €720m, is expected to be operational in 2013.
CEZ involves in generation, trading, and distribution of power and heat, while Mol Group has interests in exploration, production, refining, marketing and petrochemicals