German energy company VNG, the country’s third-largest gas importer, said on Friday it was going to ask for state aid to deal with its losses linked to soaring energy prices on the European market.
The measures requested “are intended to absorb the significant losses which are currently accumulating due to the substitution supply of natural gas and to allow the continuation of commercial activities”, indicated in a press release this company.
After the energy company Uniper this summer, it is the second German supplier to appeal to the state in the context of the gas crisis triggered by the Russian invasion of Ukraine.
VNG did not specify the amount of aid requested, but stressed that its losses were “considerable” in connection with the drying up of Russian gas deliveries, of which Germany was one of the main customers.
To replace the gas sold by Russia and to be able to honor the contracts made with German consumers, suppliers must obtain supplies on the spot market where prices have exploded.
Support in Europe
VNG says it will submit its request for “stabilization measures” to the German Ministry of Economics and Climate Action on Friday.
A 74.21% subsidiary of EnBW Energie Baden-Württemberg, VNG says it supplies gas to around 400 municipal utilities and industrial operators, or around 20% of Germany’s gas needs.
Energy companies from different European countries, facing the same difficulties, have requested or obtained public support in recent weeks.
The first of these was the largest German gas importer, Uniper, which was the subject of a multi-billion euro bailout this summer.
He too suffocated by the Russian gas cuts, he recently asked the government to extend his current line of credit with the German public development bank by 4 billion euros, after having consumed his 9 billion euros.
/ATS