Spain’s gas network operator Enagás has agreed to pay $590 million for a 10.93% ownership interest in Tallgrass Energy (TGE), the operator of several U.S. interstate pipelines. To finance the deal, Enagás partnered with the private equity firm Blackstone and Singapore’s sovereign wealth fund GIC.
Tallgrass Energy (TGE) is a U.S. midstream energy infrastructure company, operating across 11 states, whose transportation, storage and processing facilities serve some of the United States’ most prolific crude oil and natural gas basins. The Rockies Express Pipeline, one of Tallgrass’ key assets, is currently being transformed into the nation’s northernmost bi-directional natural gas gathering system.
Under the deal, Blackstone will retain a majority share in the holding company that owns 100% of Tallgrass Energy, as well as 43.91% of the economic interest in the company. GIC will retain a minority stake, while Enagás will hold 24.9% of the holding company after the transaction is completed.
Enagás also agreed to buy an additional 3.5% of the holding company for approximately $83 million after closing of the initial deal, the company said.
“As an industrial partner, Enagas will have a seat on the company's Board of Directors, contributing its know-how in operating and developing energy infrastructure,” Enagás said in a statement.
Enagás has investments in LNG import terminals on the American continent, at Altamira in Mexico and Quintero in Chile. In Spain, it operates four LNG import terminals: at Barcelona in the northeast, Cartagena in the southeast, Huelva in the southwest and Gijon in the northwest.It also owns a 50% stake in the facility serving the northwest city of Bilbao.
In addition, Enagás holds a stake in the Trans Adriatic Pipeline (TAP), part of Europe’s Southern Gas Corridor and is part a European group that took control of the Greek natural gas transmission operator DESFA.