Portugal buys into power and gas operator REN to safeguard strategic assets, influence investments

By Sergio Goncalves

LISBON, Sept 9 (Reuters) - Portugal's government said on Wednesday it bought a stake in power and gas grid operator REN to safeguard its strategic assets amid growing geopolitical uncertainty and gain greater influence over key investments.

The state agreed last month to buy 13.7% of REN, returning to the company 12 years after exiting during Portugal's bailout, a period that saw China's State Grid acquire a 25% stake and become its largest shareholder.

Environment Minister Maria da Graca Carvalho said Portugal had maintained a "good dialogue and cooperation" with the Chinese state-owned company, but said the decision was driven by considerations of sovereignty, public interest, national security and geostrategy.

"Whether it is this state-owned company or another state-owned company from another country, we cannot ignore the constant geopolitical shifts we have witnessed in recent months," she told a parliamentary committee.

She said that, given growing geopolitical uncertainty, it was important to control REN's strategic assets — the electricity and gas transmission networks and gas storage infrastructure — particularly when ownership lies outside the European Union.

"We have both European and national legislation that allows us to act in that regard, particularly in matters of sovereignty and security, as a precaution against today's highly uncertain geopolitical environment," she said.

She said the stake would also increase the state's ability to "influence from within" investments aimed at expanding REN's electricity grid, speeding up connections for new solar and wind projects, which she said would help lower electricity prices and boost the economy's competitiveness.

"We have a long list of major investments for Portugal that depend on the availability of the electricity grid," she said.

(Reporting by Sergio Goncalves; Editing by Sharon Singleton)