Germany's SEFE to take full control of gas grid operator Wiga

German nationalised energy company Securing Energy for Europe GmbH (SEFE) has reached a deal to take full control of gas network operator Wiga in a move that would back Germany’s hydrogen strategy.

SEFE said on Tuesday that it is acquiring the 50.02% stake in Wiga currently held by its joint venture partner Wintershall Dea AG.

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Wiga has two subsidiaries, GASCADE and NEL, which together operate a gas pipeline network of 4,150 km. According to Wintershall Dea, the network plays a key role in the German and European energy security.

“SEFE being the sole shareholder of Wiga would ensure that GASCADE can convert the existing high-performance infrastructure to hydrogen in the future. In this way, we can help drive forward the green energy transformation,” SEFE’s CEO Egbert Laege noted in the statement.

The deal is expected to close by the summer of 2024, subject to approval by the European Commission.

The transaction, whose financial details were not disclosed, would strengthen SEFE ahead of its planned privatisation.

The business, previously known as Gazprom Germania, was taken over by the German government during the energy crisis in 2022 and should be returned to private hands by the end of 2028.