EnBW Offers Novatek Stake in German Natural Gas Supplier

German utility Energie Baden-Wuerttemberg (EnBW) is offering an interest of upto 25 percent in natural gas supplier Verbundnetz Gas (VNG) to Novatek, Russia's largest independent natural gas producer.

EnBW, which holds an option to buy 48 percent in VNG, is also considering transferring the remaining stake in VNG to a joint venture with Novatek, in a move that would be designed to reduce a challenge by Germany’s anti-trust regulators.

Handelsblatt reports that EnBW is under political pressure not to sell the entire stake to Novatek as it would effectively put VNG under Russian control, given Gazprom already holds 10.5 percent interest.

VNG together with E.ON Ruhrgas and Wingas, a joint venture of Gazprom and BASF, are Germany's biggest gas grid companies.