Spanish gas grid operator Enagás has sold its 30.2% stake in Kansas-based pipeline operator Tallgrass Energy to investment firm Blackstone for $1.1 billion. 

The company says the proceeds will support its planned investments in hydrogen infrastructure development this decade.

The sale is part of Enagás' asset rotation strategy outlined in its 2030 strategic plan. The company has already divested stakes in the Quintero LNG terminal in Chile, the Morelos gas pipeline, and the Soto La Marina Compression Station in Mexico.

It also acquired a 15% stake in the Hanseatic Energy Hub LNG/ammonia terminal in Germany and increased its ownership in the Trans Adriatic gas pipeline to 20%.

However, Enagás acknowledges that these asset sales alone won't generate enough capital to fully fund its ambitious hydrogen pipeline network in Spain, estimated to cost €4.9 billion (about $5.7 billion), or the €2.5 billion (about $2.9 billion) H2Med cross-border link with France and wider Europe.

In February, Enagás announced a reduction in shareholder dividends from €1.74 ($1.88) per share to €1 ($1.18) over the next three years to strengthen its balance sheet and support hydrogen investments.

The H2Med project, which includes the BarMar subsea pipeline between Spain and France, is designated by the European Union as a Project of Common Interest, making it eligible for funding through the bloc's Connecting Europe Facility. 

Despite this designation, Enagás estimates that only 40% of BarMar's construction costs will be covered by subsidies. The remaining project financing will need to come from debt (36%) and equity issuance (24%).