Enagás sells its US subsidiary for €1bn to invest in hydrogen in Spain and Europe
![Enagás sells its US subsidiary for €1bn to invest in hydrogen in Spain and Europe Enagás sells its US subsidiary for €1bn to invest in hydrogen in Spain and Europe](https://estaticos-cdn.prensaiberica.es/clip/04565845-1117-44c8-92b7-b0eafb20577a_16-9-aspect-ratio_default_0.jpg)
Enagas, which runs Spain’s gas system and network of major gas pipelines, is focusing its new future strategy on accept the revolution green hydrogen. The company has focused its roadmap for the coming years on aligning itself with the strategic goals set by the EU to ensure security of energy supply and accelerate the energy transition and decarbonization. And so The Group had already foreseen its intention to concentrate its activities in Europe and Spain in the medium and long term and was open to the sale of its current business in the US and Latin America.. The first major operation in this sense took place.
Enagás has reached an agreement with investment fund giant Blackstone to sell its 30.2% stake in Tallgrass Energy, the mainstay of its US operations to date, for $1,100 million (around €1,018 million). The operation will hit Enagás’s profits this year as it ends with accounting loss of approximately 360 million euros, but it will allow the company to make money to confidently handle the multi-million dollar investment cycle it intends to undertake in a new business producing green hydrogen.
Enagas and Blackstone plan to close the deal later this month, although part of the agreed amount ($50 million) will not be received until permanent administrative clearance is granted. The transaction is intended to be one of the pillars of strengthening the Spanish group’s investment strategy in the hydrogen revolution and strengthening its liquidity to guarantee its dividend policy. in the long term (the company just cut shareholder compensation for the next three years and its profit forecasts for this year in connection with billions of dollars invested in hydrogen).
Enagas foresees that Hydrogen will be the main source of future growthbecause of the progressive decline of its business as a natural gas network operator and the growing loss of the regulated revenues it receives from operating gas pipelines. Enagas’ long-term plan is to move from operating gas pipelines to operating hydro pipelines, the large corridors through which green hydrogen will circulate. Enagas’ roadmap is being implemented Investments of 3,200 million euros are expected in the construction of large “green” hydrogen corridors. both within Spain (the main network) and to connect them with Europe (with the Pharaonic H2Med together with France, Portugal and Germany).
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