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Market Chatter: Portugal Says Stake in Grid Operator REN Will not Affect China Grid

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The government of Portugal has said that its purchase of a stake in REN, a power and gas grid operator, will not have any impact on the 25% stake that is owned by China's State Grid, which wants to remain a major shareholder, Reuters reported on Wednesday.

Portugual last month agreed to buy 13.7% of REN, having previously owned a stake 12 years ago during a bail out when the Chinese state-owned grid operator bought its own stake to become the largest, though still minority, shareholder.

The government plans to increase its stake to as much as 20%, the article said, and Portugal has told Beijing of its plans and that this would not entail changes to the size of State Grid's stake.

Portugal's desire to increase its stake has been prompted by increased geopolitical uncertainty, a concern over energy security and the fact that energy infrastructure is of growing strategic importance now, the article said.

The Portuguese energy ministry did not immediately respond to a request for comment from.

(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)

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Commodities

Maine's Senators Urge Trump to Tap Heating Oil Reserve as Prices Rise 74%

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Commodities

US Power Update: Prices Swing as ERCOT Records Intraday Low of -$116.49/MWh

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Commodities

Natural Gas Update: US Prices Rise on Inventory Expectations, While European Prices Gain Despite Renewed Peace Talks

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