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Enagás finalizes $1B deal with Blackstone for Tallgrass Energy stake

Economy Materials 10 July 2024 17:30 (UTC +04:00)
Maryana Ahmadova
Maryana Ahmadova
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BAKU, Azerbaijan, July 10. Enagás has announced an agreement to sell its 30.2% stake in American company Tallgrass Energy to Blackstone Infrastructure Partners for $1.1 billion (approximately 1.018 billion euros at the current exchange rate), Trend reports.

According to the company, the deal is expected to close by the end of July. However, $50 million of the agreed amount will be received once ongoing administrative authorization is obtained.

This sale is part of Enagás's asset rotation strategy outlined in its 2022-2030 Strategic Plan, which prioritizes decarbonization and security of supply in Spain and Europe. Despite generating an accounting loss of around 360 million euros in the 2024 income statement, the transaction will have a positive impact on the company's cash flow due to the significant cash influx from the divestment.

By divesting its stake in Tallgrass Energy, Enagás strengthens its balance sheet, allowing it to confidently execute its investment plan in renewable hydrogen infrastructure. This plan is part of the European Union’s Projects of Common Interest and aligns with the Royal Decree-law 8/2023, which designates Enagás as the provisional manager of the Hydrogen Backbone Network.

This transaction supports Enagás's dividend policy and enhances its long-term sustainability.

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