Enagás meets 2022 targets, boosts its 2030 strategic plan

Spanish energy company Enagás has announced that all its objectives set for 2022 have been achieved and the degree of execution of its 2022-2030 strategic plan is higher than expected.

Enagás’ net profit on 31 December 2022 amounted to €375.8 million, exceeding the target for the year.

The significant milestones achieved are the sale of Enagás’ 45.4% stake in GNL Quintero for €639 million, with a net capital gain of €135 million, and the divestment of Enagás Renovable, in which the company currently holds a 60% stake.

Other achievements include:

• The company’s efficiency plan has been implemented, which allowed recurring operating expenses to evolve below inflation
• Net debt in 2022 has been reduced by 19%, mainly due to high cash generation, the divestment in GNL Quintero and the good performance of working capital.
• The affiliates have contributed 39% of the net profit
• The infrastructures of the Spanish gas system have operated with 100% availability, underground storages have reached 93% capacity at the start of winter and LNG plants have had an average fullness level of around 70%
• Natural gas has reached Spain from 19 different origins and an all-time annual record of exports to France by pipeline has been achieved
• The sum of gas demand in Spain and exports was 4.4% higher than in 2021
• 2022 has been a landmark year for hydrogen with Enagás, and French and Portuguese transmission system operators (TSOs) agreeing to collaborate on the development of the H2Med project, which is described as the first hydrogen corridor in the EU

Enagás’ said that, in Europe, its Trans Adriatic Pipeline (TAP) continues to contribute to reducing dependence on Russian gas, especially in Italy, Bulgaria and Greece, and the Greek subsidiary DESFA is reinforcing its role for the security of supply in the country, which has experienced an all-time record gas demand in 2022 (7.5 bcm).

Enagás investees in the United States (US), Mexico and Peru continue to advance the energy transition process in these countries.

In Spain, the subsidiary Enagás Renovable received a provisional award of €25.6 million for three hydrogen projects under the Strategic Projects for Economic Recovery and Transformation (PERTE) programme, and the first Final Investment Decisions (FIDs) to promote hydrogen and biomethane projects are expected to be taken in 2023.

According to Enagás, 2023 will be a key year as well, and its net profit target for 2023 is between €310 and €320 million, due to the reduction in revenues established in the regulatory framework.

In January 2023, Enagás purchased an additional 4% stake in TAP from AXPO for an investment of €168 million, thus increasing its shareholding in this infrastructure to 20%.

In the same month, the Spanish government announced an agreement for Germany to join the H2Med project.

This project will allow for the transportation of 2 million tonnes of green hydrogen to Europe, which will be produced in Spain and Portugal. H2Med also involves the development of a Spanish Hydrogen Backbone Network.

The total estimated gross investment in H2Med is €2.5 billion, while that of the Spanish Hydrogen Backbone Network is €4.67 million by 2030.

In the first four months of 2023, Enagás said it is expecting the sale of Gasoducto Morelos, which would generate a capital gain of around €40 million in 2023.

As part of its 2030 plan, Enagás said it has taken all the steps to start up El Musel as an LNG logistics plant and is ready to begin operations as soon as the final administrative procedures are completed. This plant is expected to enhance the security of supply in Europe by a capacity of up to 8 bcm.

Enagás noted that it has also updated its sustainability strategy in accordance with its strategic plan, focusing on the decarbonisation of its operations and value chain, people-centred transformation and governance to ensure due diligence in human rights and the environment.

Recently, Enagás Renovable and energy company Naturgy presented their project for the construction of a renewable hydrogen plant with a production capacity of up to 280 MW in La Robla, Spain.