Germany fears that China could get access to its gas network – media
Handelsblatt
Germany's economy and energy ministry is examining whether China could gain access to the German gas network via an Italian energy company, business daily Handelsblatt reported. The ministry is reviewing a deal by Italian gas network operator Snam to acquire a stake in Germany's largest gas network operator, Open Grid Europe (OGE), to determine whether it could pose "a threat to public order or security," the outlet reported.
In April, Snam announced its intention to acquire a 24.99 percent stake in OGE in a 920 million euro deal, from an investment company based in Abu Dhabi. However, the State Grid Corporation of China (SGCC) holds a significant stake in a holding company that is a minority shareholder at Snam, Handelsblatt reported.
Officials at the economy ministry have therefore initiated an in-depth investment review process, classifying the Chinese attempt to indirectly buy into OGE as "very delicate", the outlet wrote. It added that it is unclear what influence China’s national grid operator could exert on the operational management of Snam, and consequently on OGE.
Following Russia's weaponisation of energy trading as part of its war on Ukraine, energy supply security has become a key issue for Europe. Germany has stepped up its efforts to protect critical infrastructure – including the energy sector – against sabotage. The European Commission has previously expressed concerns about security and a growing dependence on China, including for energy transition technologies such as batteries and offshore wind turbines.
