The combined cycle plant with two 400-megawatt turbines will be located in the eastern town of Eisenhuttenstadt, and its launch has been scheduled for 2010.
The joint venture, in which Gazprom's subsidiary, Gazprom Marketing & Trading Ltd, and Luxembourg's main natural gas supplier will have equal stakes, will sell part of its electric energy output directly to industrial consumers under long-term contracts.
The Russian natural gas monopoly said the project would allow its subsidiary to diversify its business, which comprises trading in natural gas, including liquefied gas, electric energy and quotas on atmospheric emissions.
Gazprom Marketing & Trading Ltd supplies over 70 wholesale consumers in Western Europe and some 1,000 retail consumers in the United Kingdom and France.
