Enagas agrees USD-1.1bn Tallgrass exit to fund green H2 strategy

Spanish gas grid operator Enagas SA (BME:ENG) has struck a deal to sell its stake in US energy infrastructure company Tallgrass Energy to a unit of investment firm Blackstone (NYSE:BX) in a push to secure capital to advance its green hydrogen plans.

The transaction envisages the sale of Enagas’ 30.2% stake to Blackstone Infrastructure Partners, already an investor in the business, for USD 1.1 billion (EUR 1.01bn), a press statement said on Wednesday.

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The divestment comes after a consortium including Blackstone, Enagas, Singapore’s sovereign wealth fund GIC, NPS and USS took Tallgrass private 2020.

The new deal is aligned with the Spanish firm’s asset rotation process within the 2022-2030 Strategic Plan that prioritises decarbonisation and security of supply in Spain and Europe.

The sale will strengthen Enagas’ balance sheet to advance the investment plan in renewable hydrogen infrastructure, included in the EU’s list of Projects of Common Interest. The company is part of the European Hydrogen Backbone (EHB) and is set to pour about EUR 3.2 billion as part of its hydrogen infrastructure investment plan in 2026-2030.

The Madrid-based firm is involved in various projects, including the La Robla green hydrogen production plant in Spain and a Spain-France hydrogen pipeline project, among other initiatives.

(USD 1 = EUR 0.924)