Sources indicated that the agreement, set to expire at the end of November, will be automatically extended as neither party exercised its right to opt out six months prior to the deadline.
The Italian government's anxieties over Chinese interference in core energy assets resurfaced last November when Snam was forced to abandon plans to acquire a stake in Germany's largest independent gas transport company due to resistance from German authorities.
The German Ministry of Economic Affairs had opposed the transaction because of State Grid Corporation of China's position as an indirect investor in Snam, according to reports by Reuters at the time.
Both Rome and Berlin are seeking to counter China's growing industrial and political influence in Europe, while simultaneously attempting to maintain economic ties with Beijing that remain vital to the industries of both nations.
In 2014, CDP sold a 35% stake in CDP Reti to State Grid Corporation of China. CDP Reti currently holds 31.4% of Snam, 29% of Terna, and approximately 26% of Italgas, Italy's leading gas distributor.
Qinjing Shen, representing the Chinese state-owned group, sits on the boards of directors of Snam, Terna, Italgas, and CDP Reti.
His presence on all three boards provides visibility into Italy's strategic moves in the energy sector, fueling concerns within government circles that the Chinese shareholder could potentially hinder the companies' expansion plans.
Italy's 'golden power' regulations, designed to protect strategic assets, cannot be invoked in the case of CDP Reti, as the renewal of an existing governance pact falls outside the scope of the legislation.
However, sources emphasized that the agreement limits State Grid's room for maneuver within CDP Reti, thereby safeguarding Italy's strategic interests in the three utilities.
(Translated by Greta Colombo, edited by Andrea Mandalà)
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