German government considers stake in gas importer VNG

Germany’s government is mulling the possibility of buying a chunk of a second large natural gas importer, it was reported on Thursday, as the energy crisis continued to worsen across Europe.

According to Bloomberg, Berlin was considering a rescue package for VNG - the gas importing subsidiary of utility supplier EnBW - that could include a capital injection to give it a minority shareholding.

The gas importer, which supplies around 400 municipalities and industrial customers, applied for state aid last week.

Its request came on the back of talks of the potential nationalisation of energy giant Uniper, with both companies feeling the pressure of skyrocketing wholesale gas prices and ongoing disruptions to supply from Russia amid that country’s ongoing invasion of Ukraine.

Bloomberg cited “people familiar with the matter” as saying that the rescue package being considered for VNG would be similar to Uniper, but differed in that its parent EnBW would be required to contribute.

EnBW said last week that the projected extra costs for VNG to replace its Russian gas supply to meet its contracts had soared to €1bn.

Reporting by Josh White at Sharecast.com.