Established on June 29 1990 Verbundnetz Gas AG VNG AG has a rich history. It’s rooted in the VEB Verbundnetz Gas. This predecessor started in 1958. It provided city gas from domestically produced brown coal. The Soviet Union began supplying natural gas in 1973. This was more efficient and environmentally friendly. VEB Verbundnetz Gas then handled its distribution and storage.
VNG AG’s story is one of remarkable transformation. It was the first large East German company successfully privatized by the Treuhandanstalt. Klaus-Ewald Holst a key figure played a crucial role. He had been an engineer at VEB Verbundnetz Gas since 1968. Initial shareholders included Ruhrgas AG and BEB Brigitta Erdgas. The remaining shares were sold in the summer of 1991 completing privatization. Other investors included Wintershall British Gas ELF Gazprom Statoil and Erdol-Erdgas Gommern.
After German reunification VNG faced a monumental task. It had to convert East German households from city gas to natural gas. It also needed to diversify natural gas supplies expand pipelines and connect to the European natural gas transport system. Sales to industrial customers and municipal utilities were restructured. In its first fiscal year 1990/91 VNG built 250 km of pipelines. It also converted 600 km of city gas pipelines to natural gas.
By June 1995 East Germany’s conversion was complete. VNG invested about 767 million euros until 1995. This was for converting around 6100 km of high-pressure pipelines. It built roughly 700 km of new pipelines and increased the storage capacity of its underground storage facilities. In September 1992 the VNG network was linked to West Germany’s system. A year later VNG signed a long-term contract for Norwegian gas. This ended dependence on Russian gas.
From the mid-1990s VNG promoted natural gas as fuel. In September 1996 it financed Saxony’s first public natural gas filling station in Leipzig. In 2006 VNG established a subsidiary in Norway. VNG Norge was responsible for upstream activities. In 2018 it exited this area to focus on green gases.
VNG is also active in biogas. In 2006 it created Balance Erneuerbare Energien GmbH. In 2023 Balance operated around 40 biogas plants. Biogas sales to VNG customers began in 2016 through bmp greengas GmbH. In 2020 VNG acquired Gas-Union GmbH.
The Russian invasion of Ukraine in 2022 greatly impacted VNG. Gas prices soared as Russian imports ceased. VNG incurred substantial losses. It applied for government aid which was later withdrawn. Shareholders approved an 850-million-euro capital increase. VNG is recovering financially. It plans investments in hydrogen biogas and digital infrastructure.
VNG is a major player. It handles about one-fifth of Germany’s gas needs. It is the third-largest gas importer and storage operator. Its network spans over 7700 km of gas pipelines in East Germany. It serves clients in other European countries too. VNG’s future looks bright. It’s committed to green energy. Its focus is on hydrogen and biogas. This is an exciting time for VNG AG.