GDANSK, Jan 23 Reuters Poland39;s largest power producer PGE has struck a preliminary agreement to potentially buy gasfired power plant project PAK CCGT from power plant operator ZE PAK, PGE said on Thursday.

The preliminary deal also outlined plans for PGE to buy ZE PAK39;s 50 stake in their PGE PAK Energia Jadrowa joint venture, which is working on a nuclear power plant project in central Poland39;s Konin region, PGE said.

Under the agreement, the parties have agreed the basis of terms of a potential transaction and PGE has been granted exclusive status to negotiate a deal until the end of June.

No financial terms were disclosed.

At 1325 GMT, ZE PAK shares were up 21 at their highest since early October. PGE shares were up 1.2.

Polish utilities are expanding gasfired power capacity as coal power generation loses profitability due to the cost of carbon emission allowances and rising renewable output.

Statecontrolled PGE last year launched 1.4 gigawatts of gasfired power capacity, replacing aging coalfired generators at its Dolna Odra power plant. It is also building a 882megawatt MW unit in southern Poland that will replace coalfed generators. ZE PAK is building a 600 MW gas generator in central Poland.

ZE PAK, PGE and Korea Hydro Nuclear Power agreed in 2022 to work on developing four 1,400 MW nuclear reactors in Patnow, central Poland, using South Korean technology, but the project has been on hold since Polish elections in 2023.

Reporting by Rafal W. Nowak…