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Germany negotiate additional state subsidies for gas imports

Germany is in advanced talks with Sefe, previously Gazprom Germania, to pay billions of euros in additional guarantees to ensure the firm can fulfil a massive deal to provide gas to German importer VNG, according to two people familiar with the subject.


According to the persons familiar with the agreement, Sefe would receive additional government-backed credit lines to fulfil a contract in which it supplies 65 terawatt hours (TWh) of gas to VNG , a subsidiary of German utility EnBW, each year.


One of the persons said an agreement might be reached as soon as this week, but that conversations were still ongoing and that the outcome could change.


According to one source familiar with the discussions, the state may provide a guarantee that would support a loan to Sefe from the state bank KfW. This cash might then be used to purchase gas on the open market.


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