Germany’s government is considering taking a controlling stake in the country’s energy major Uniper SE and “is open to” fully nationalizing the company, which is Germany’s biggest gas importer, Bloomberg reports.
The potential move is designed to ensure the energy company’s survival in the coming months and head off a collapse in Germany’s energy system. Russia’s PJSC Gazprom on Sept. 2 said it would not reopen the key Nord Stream I pipeline that brings Russian gas to Europe via Germany (GM Sept. 2, p. 35), while Moscow this week said Russian gas exports to Europe will fall roughly 66% this year (see separate story).
Düsseldorf-based Uniper already has drawn on a state support package that could be worth as much as €20 billion (approximately $20 billion at current interest rates), according to unnamed sources cited by the report.
Soaring natural gas prices amid Russian supply cuts have triggered millions in daily losses at the energy firm, prompting the German government to step in with a rescue package in July, which included a 30% stake in the company.
The government is ready to inject more capital into Uniper and increase its stake above the 50% threshold, according to the sources cited by the report.
The government is also reported to be ready to take a stake in two other domestic gas suppliers – VNG AG, the troubled gas importing subsidiary of Germany utility company EnBW AG, and in Securing Energy for Europe GmbH, formerly Gazprom Germany GmbH.
A rescue package for VNG could include a capital injection that could give the government a minority stake in the company, according to a Bloomberg report, citing unnamed sources familiar with the matter.