Enagás signs deal to acquire stake in Tallgrass Energy

Spanish energy firm Enagás has signed an agreement to invest $590m as part of a consortium deal to acquire a 10.93% indirect ownership interest in US-based energy infrastructure company Tallgrass Energy (TGE).

As part of the agreement, the company will partner with affiliates of Blackstone Infrastructure Partners and Singapore’s sovereign wealth fund GIC to purchase a stake in TGE, which owns 11,000km of transmission pipelines.

The deal will allow Blackstone to retain a majority interest in the holding company that owns 100% of TGE’s general partner, as well as 43.91% of the economic interest in TGE.

GIC will retain a minority stake, while Enagás will hold 24.9% of the holding company after the completion of the transaction.

Enagás will contribute its expertise in operating, developing and maintaining energy infrastructure to TGE.

The transaction will also offer Enagás a seat on the company’s board of directors.

Blackstone Infrastructure Partners senior managing director Wallace Henderson said: “We are delighted to welcome Enagás as an industrial partner into our consortium.

“With extensive midstream operations around the world, they bring valuable perspectives to Tallgrass that will benefit our investment and we look forward to their contributions.”

Enagás has also agreed to purchase an additional 3.52% of the holding company for $83m once the transaction is closed. The interest will be subject to the satisfaction of certain conditions precedent.

The company will also invest up to $300m in future investments in TGE.

Founded in 2012, Tallgrass owns three interstate gas pipelines. Apart from gas transmission pipelines, the company also owns 2,400km of gas gathering pipelines and a 1,300km oil pipeline.

Meanwhile, affiliates of Blackstone Infrastructure Partners have completed the acquisition of 100% of the membership interests in TGE’s general partner and a 44% economic interest in Tallgrass Energy in a $3.2bn deal.

Affiliates of GIC and Enagás are minority investors in the transaction.