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Spanish Enagás to invest in US Tallgrass Energy company

Oil&Gas Materials 12 March 2019 11:00 (UTC +04:00)
Spanish Enagás has entered into an agreement with affiliates of Blackstone Infrastructure Partners and GIC (Singapore’s sovereign wealth fund) to invest $590 million for a 10.93 percent indirect ownership interest in Tallgrass Energy LP (“TGE”).
Spanish Enagás to invest in US Tallgrass Energy company

Baku, Azerbaijan, March 12

By Leman Zeynalova – Trend:

Spanish Enagás has entered into an agreement with affiliates of Blackstone Infrastructure Partners and GIC (Singapore’s sovereign wealth fund) to invest $590 million for a 10.93 percent indirect ownership interest in Tallgrass Energy LP (“TGE”), Trend reports with reference to the website of Enagas.

Reportedly, Enagás investment is in the holding company that owns 100 percent of TGE’s general partner, as well as approximately 43.91 percent of the economic interests in TGE1.

“The investment is structured with Blackstone retaining a majority, GIC retaining a minority, and Enagás owning 24.90 percent of the holding company at closing. Following the closing, Enagás has agreed to acquire an additional 3.52 percent of the holding company for approximately $83 million, subject to completion of certain conditions precedent,” reads the message.

Enagás has also agreed to invest up to $300 million in future investments in TGE, as more fully described in Item 6 of the Schedule 13D filed by Enagás with the US Securities and Exchange Commission.

The company said this transaction fits Enagás' strategic plan of investing in core business assets in stable markets offering growth opportunities identified as priority markets in the company's Strategic Plan (Europe and Pacific Axis: Mexico, Peru, Chile, Colombia and the United States) maintaining strict international investment criteria.

“Enagás will make available to its co-investors its know-how in developing, operating and maintaining gas infrastructures. Moreover, knowledge of international markets will enable Enagás to assess other investment opportunities, in line with the strategy already announced in this respect,” said the message.

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