Gazprom, the Kremlin-backed Russian gas giant, is negotiating a deal that could see it take a stake in up to five UK power stations, it emerged today.

The move would represent the group’s biggest step in the UK market so far and fuel yet more fears about the security of future energy supplies.

Russian newspaper Vedomosti today reported that Gazprom was hoping to seal an asset swap with German rival E.ON, the company that owns Powergen and controls around 10 per cent of electricity sales in the UK.

Under the deal, E.ON would take a 25 per cent stake in the mammoth Yuzhno Russkoye gas field run by Gazprom.

The Russian field is expected to be the main source of gas for the new Nord Stream continental pipeline.

In exchange, Gazprom wants a stake in its UK power stations, which include generators in Killingholme, Taylor’s Lane, Cottam Development Centre, Enfield and Connah’s Quay in Wales.

E.ON is understood to have offered Gazprom a share of its gas and power firms in Hungary. Gazprom is believed to want more given the value of the Yuzhno Russkoye project.

Gazprom and E.ON refused to comment.

Gazprom has made little secret of its desire to break into the UK power market and has continually been linked with a possible takeover of Centrica, the owner of British Gas.

The Russian group currently supplies a few thousand business such as Sir Philip Green’s BHS with energy through the Cheshire-based Gazprom Marketing & Trading arm it set up three years ago.

UK politicians would be under pressure to resist a deal given the pressure from Russian regulators that has forced both BP and Shell to cede control of key projects in Russia in the past year.

The reports in Vedomosti came as RWE, E.ON’s German rival, confirmed plans to press ahead with a new £800 million gas power station at Pembroke, West Wales.

The group, which owns npower in the UK, also raised its profit forecasts for the year after operating profits in the first half rose 18 per cent to €4.4 billion (£2.9 billion).

RWE said that for the full-year it expected earnings growth of between 10 and 15 per cent, against earlier estimates of a 10 per cent rise. The group said that it had benefited from higher power prices and increased profits in from trading commodities.

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