Bulgaria, Westinghouse Enter into Exclusive Talks on Nuclear Deal

Posted: Friday, December 13, 2013

Westinghouse Electric Co., the U.S.-based unit of Japan 's Toshiba Corp (6502.TO), Thursday said it had signed an agreement with the Bulgarian energy ministry to enter into exclusive talks for the supply of a new nuclear reactor at its existing Kozloduy nuclear power plant.

The agreement the two sides signed Thursday could be worth several billion dollars if it leads to a final, binding contract sometime next year.

No financial terms were announced.

Bulgaria would like construction of the new reactor to start as soon as 2016.

Thursday's move is meant to diversify sourcing in Bulgaria 's nuclear sector and marks the European Union member state's turn towards the West in this critical sector.

Bulgaria 's traditional energy sector supplier is Russia and the two sides recently agreed to a deal allowing Russia 's planned South Stream natural gas pipeline to cross Bulgarian territory.

All six of Bulgaria 's nuclear reactors at the Kozloduy plant were of Russian design. Four units have already been decommissioned while the remaining two units have undergone major renovations to meet EU safety norms.

Licensing for those units expires in 2017 and 2019.

(Dow Jones)