Spanish company Enagas has announced the sale of its 30.2% stake in U.S. energy infrastructure company Tallgrass Energy to U.S. investment firm Blackstone for $1.1 billion to finance green hydrogen projects. The transaction, expected to close by the end of this month, will result in a € 360 million ($389.38 million) capital loss for Enagas. Despite the anticipated loss, Enagas shares rose 3.9% in early trading on Wednesday.
The sale of the Tallgrass stake, originally acquired for $1.64 billion in 2019, will contribute to Enagas’ renewable hydrogen investments. Despite an expected loss this year, analysts project a small positive impact on earnings from 2025 onwards. Enagas has also reduced its dividend plans for the next three years to support its hydrogen infrastructure investments.
Enagas, partially owned by the Spanish state (5% stake), aims to transition from its traditional role as a natural gas grid operator to managing a hydrogen infrastructure network based on the government’s plans to develop green hydrogen production.
The company expects to invest approximately €3.2 billion through 2030 to develop its hydrogen trunk network in Spain and the trans-European H2Med corridor. This shift aligns with the Spanish government’s plans to advance green hydrogen production.
By the end of the decade, Enagas anticipates that its regulated hydrogen assets, valued at around 3 billion euros, will surpass its natural gas assets, estimated at 2 billion euros.