Enagás Sells Stake in Tallgrass Energy to Blackstone to Fund Hydrogen Infrastructure
Key Ideas
- Enagás sells its stake in Tallgrass Energy to Blackstone for $1.1 billion to fund hydrogen infrastructure development.
- The company's asset rotation strategy includes divesting stakes in various projects and acquiring stakes in the Hanseatic Energy Hub and Trans Adriatic gas pipeline.
- Enagás plans ambitious hydrogen pipeline projects in Spain, such as the H2Med cross-border link with France, totaling billions of euros in investment.
- Despite receiving EU Project of Common Interest designation, Enagás expects only 40% of the BarMar subsea pipeline construction costs to be covered by subsidies, requiring additional financing through debt and equity.
Spanish gas grid operator Enagás has sold its 30.2% stake in Kansas-based Tallgrass Energy to Blackstone for $1.1 billion. The proceeds will aid Enagás in its hydrogen infrastructure development plans. Enagás is pursuing an asset rotation strategy as outlined in its 2030 plan, involving divestment from projects like the Quintero LNG terminal in Chile. The company also aims to invest in hydrogen projects in Spain and Europe. To finance these projects, Enagás is reducing shareholder dividends and exploring various funding sources, including EU grants for the H2Med project. Despite the potential subsidy, Enagás anticipates the need for significant debt and equity financing for the BarMar subsea pipeline. Overall, Enagás is strategically positioning itself to play a key role in the energy transition towards hydrogen.