Italy's Snam eyes greater stake in Germany's top gas TSO

Italian gas infrastructure company Snam is contemplating expanding its ownership further in Open Grid Europe (OGE), Germany's largest independent gas transmission operator, the company told Reuters on April 8. 

This follows Snam's announced €920mn ($1bn) acquisition of a 25% stake in OGE from Abu Dhabi's Investment Authority a day earlier, marking its entry into the German gas market, Europe's largest by volume.​ That deal is due to close in the third quarter.

Snam’s CFO Luca Passa said the company viewed this acquisition as a strategic move to expand its presence in key European energy corridors. He stated: "We will consider it, but we also want to see how the regulatory framework evolves in Germany."

The purchase is projected to enhance Snam's net income by approximately €40mn annually between 2026 and 2029, representing a 2-3% increase in profit and a 1% rise in adjusted earnings per share. ​

CEO Stefano Venier emphasised Snam's ambition to further expand within Europe, particularly targeting the southern Mediterranean region, while dismissing plans for global expansion beyond the continent. Future decisions regarding increasing the stake in OGE will depend on the positions of fellow shareholders and regulatory developments in Germany.

OGE operates a gas pipeline network of around 12,000 km, handling around 21bn cubic metres per year of redelivered gas to more than 400 end customers. This is equivalent to around a fourth of total German gas demand.

In the future, OGE plans to use some of this network to also transport clean hydrogen, through a leadership role in the German Hydrogen Core Grid initiative. This in the future could also be integrated with Snam’s own SoutH2Corridor, H2Med and SEEHyC hydrogen plans, the company said.

In addition, OGE manages 16 interconnection points with Germany’s neighbours, including Belgium and Switzerland, Snam’s Austrian subsidiaries GCA and TAG, and then to Italy through the Tarvisio entry point, by which Italy can export up to 9 bcm per year, with capacity set to reach 14 bcm in 2026.