Wintershall Dea is one of the main players in exploration, production and transportation of oil and gas in Germany. Wintershall Dea´s transportation activities in Germany are managed by WIGA Transport Beteiligungs-GmbH & Co. KG. The WIGA subsidiaries and assets operate a vast pipeline network spanning over 4,000 kilometres across Germany, connecting five European countries and contributing to a secure energy supply for Germany and Europe. Wintershall Dea is considering the sale of their regulated German gas midstream (transmission networks) business and seeking support for the vendor due diligence.

For the Vendor Due Diligence an integrated Investment Story is key for the success of transaction, given the very short timeframe of sales process. A consistent Investment Story requires a seamless interaction between the Commercial, the Technical and ESH+HSE and the Regulatory work streams. Investment Story is based on evolution of regional energy supply and demand against background of long-term outlook on European gas market. For the Regulatory Vendor Due Diligence, we provided our views on the potential upside and downside of regulation development in Germany and assessed their implications on Wintershall Dea.

E-Bridge created a Regulatory Vendor Due Diligence on German gas midstream business of Wintershall Dea together with AFRY. Key deliverable of the project was a PPT-report comprising statements and information on the elements required in a regulatory due diligence analysis. The deliverable will be used as a basis for information memorandum to potential investors. Within the scope of the RDD we gave a brief overview of the structure and current regulatory topics in the German gas market. We summarized the incentive regulation scheme and derived Wintershall Dea’s regulatory cost base and revenue caps with the help of our regulatory model.