Spanish gas grid operator Enagas said on Tuesday it had reached an agreement with Singapore sovereign wealth fund GIC to buy its 31.5% stake in French gas grid operator Terega for 573 million euros ($674.65 million).
The deal, which the firm expects to close this year, is in line with Enagas’ shift towards hydrogen infrastructure and security of supplies in Europe.
In recent years, Enagas has sold assets in the United States, Chile and Mexico as it refocused on Spain and Europe.
Terega operates more than 5,000 km (3,106 miles) of natural gas pipelines and two underground storage facilities, which correspond to around 16% of France’s gas transport network and 27% of its storage capacity.
Reuters reported in October that Enagas held talks to acquire GIC’s stake in Terega, its partner in a planned Spain-France hydrogen pipeline. The companies already operate gas pipeline connections between the two countries.
The transaction will benefit both companies and both countries, Enagas said in a statement, strengthening security of supply and decarbonisation goals while keeping the independence of both operators.
Enagas expects a return on investment of 8% from the deal and an average contribution to net profit of 15 million euros a year through 2032.
Enagas also agreed to sell a 40% stake in Enagas Renovable to Hy24 for 48 million euros, keeping a 20% stake in the company. This sale will have a positive impact of 9.5 million euros on net profit this year, it said.
The company said its first-quarter net profit fell almost 13% to 56.9 million euros compared with the same period last year, but added it was on track to meet its 2026 targets.
Source: Reuters.com