The German Federal Ministry for Economic Affairs has initiated a detailed investment review process, reportedly to safeguard against potential Chinese influence over Germany’s gas infrastructure. The move, according to reporting in Handelsblatt citing government sources, stems from a planned acquisition announced in April.
Italian gas network operator Snam intends to acquire a 24.99 percent stake in Open Grid Europe (OGE), Germany’s largest gas network operator. The investment review has been triggered by the fact that a holding company with significant shares held by China’s State Grid Corporation (SGCC) is a minority shareholder in Snam. SGCC’s leadership structure involves appointments directly from the Communist Party’s Central Committee and the State Council and the corporation has been expanding its international investments in energy grids for years.
OGE plays a critical role in supplying gas to German industry and households. This is not the first time that SGCC has attempted to gain access to German energy infrastructure; a previous bid to acquire shares in the German electricity grid operator 50Hertz in 2018 was unsuccessful.
During the investment review concerning OGE, the ministry is assessing whether the planned acquisition could potentially constitute a threat to public order or security. A spokesperson for the Federal Ministry for Economic Affairs declined to comment on the process, citing confidentiality related to business and trade secrets. Open Grid Europe also stated it would not be commenting on the situation.