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Spanish gas utility Enagas (OTCPK:ENGGF) (OTCPK:ENGGY) said Wednesday it agreed to sell its 30% stake in U.S. pipeline firm Tallgrass Energy to Blackstone Infrastructure Partners (NYSE:BX) for $1.1B.
Enagas (OTCPK:ENGGF) (OTCPK:ENGGY) said the Tallgrass sale will finance its renewable hydrogen infrastructure investment plans.
The company also said the sale will generate an accounting loss of ~€360M in its 2024 income statement but have a “very positive impact” on its cash flow statement.
Enagas (OTCPK:ENGGF) (OTCPK:ENGGY) aims to transition from its traditional role as a natural gas grid operator to managing a network of hydrogen infrastructure, taking advantage of the Spanish government’s plans to develop green hydrogen production.