The German Federal Ministry for Economic Affairs and Climate Action has initiated a detailed investment review process concerning a proposed stake acquisition in Open Grid Europe (OGE), the nation’s largest gas network operator. The move, reported by “Handelsblatt” citing government sources, aims to potentially prevent undue influence from China over critical German energy infrastructure.
In April, Italian gas network operator Snam announced its intention to acquire a 24.99% stake in OGE. However, a complicating factor has arisen due to Snam’s minority shareholders, which includes a holding company with substantial ownership by the State Grid Corporation of China (SGCC). SGCC’s leadership is directly appointed by the Central Committee of the Chinese Communist Party and the State Council and the company has been actively expanding its international investments in energy grids for several years.
Within the German government, the situation is being described as “highly sensitive” given OGE’s crucial role in supplying gas to both German industry and households. This latest development follows a previous, unsuccessful attempt by SGCC in 2018 to acquire a direct stake in the German power grid operator 50Hertz.
The investment review process currently underway will examine whether the proposed acquisition poses a potential threat to “public order or security”. The Federal Ministry for Economic Affairs and Climate Action declined to provide specific information regarding the review, citing operational and business confidentiality. OGE itself has also refrained from commenting on the matter.
