Enagás and Naturgy will work together to develop the largest hydrogen plant in Spain in León. The aim will be to produce up to approximately 9,000 tons per year of renewable hydrogen from a 400 MW photovoltaic plant and an electrolyzer of up to 60 MW. The energy generated will not only be used to cover local consumption, but will also be injected into the gas network and be an option for future export to northwestern Europe.
Amazon has announced 26 new wind and solar energy projects totaling 3.4 GW of electricity production capacity, bringing its total investment in renewable energy in 2020 to 35 projects and over 4 GW of capacity. This makes Amazon the world’s greatest corporate buyer of renewable energy. Amongst these new contracts were two with Spanish companies: Acciona and Naturgy. Acciona’s includes the supply of 641 MW of clean energy to the US multinational, while Naturgy’s means the construction of a wind farm in Australia provided with 97 MW.
Spanish gas firm Naturgy has secured its gas supply for the next 20 years at a price lower than the current one. The news comes after Prime Minister Pedro Sánchez’s institutional visit to Algeria. In the wake of this, Naturgy has signed off on the end to the disputes with Algerian state group Sonatrach. At the same time, it has agreed new contracts with the group valued at 20 billion euros over the next two decades.
Naturgy signed last week with Snowy Hydro its first energy sales contract with a retailer in Australia to build a 218 MW wind farm in Victoria. Some days later, the company has increased its presence in the country with the award by the Australian Capital Territory of 107 MW wind farm and a battery energy storage system of 20 MWh. With both operations, Naturgy doubles its presence in the region, reaching a renewable capacity of near 600 MW and becoming the Top-3 independent wind energy producer.
Naturgy will incorporate BlackRock’s Global Energy & Power Infrastructure Fund (GEPIF) as a financial partner in its purchase of 34.05% of Medgaz. To this end, it has sold 50% of the vehicle which will control its participation in the underwater gas pipeline running between Spain and Algeria.
Naturgy has agreed with Eni and Egypt to end their dispute over Unión Fenosa (UFG), in which the Spanish and Italian firms own 50% each. The company said the agreement includes the payment of 600 million dollars (about 547 million euros) in cash and most of the company’s assets outside of Egypt, excluding UFG’s business activities in Spain.
Morgan Stanley | Our estimates of Naturgy (NTGY) for 2022 are 18% below the objectives set by the company. This is due to our negative vision in LNG and in Latin American currencies.
Acerinox and MásMóvil will increase their weight in the Spanish stock index, accounting for 100% of its capital vs current 80%. On the contrary, Colonial will see it reduced to 60% (vs current 80% ) while Naturgy goes from 60% to 40%.
For the ratings agency, the reforms the Spanish regulator wants to carry out include a significant change in methodology which means less income for the companies in the sector in 2021-2026.
José Benito de Vega | Naturgy has enjoyed a very positive stockmarket evolution since the beginning of 2018, in which period its value has increased 43% compared to an 8% fall of the IBEX35. There are various factors behind his positive performance compared to the index, which was accentuated following the presentation of its Strategic Plan in June 2018. However, after the positive evolution of its shares, it is trading with elevated multiples and at a premium to the European sector which, in our opinion, does not take account of the regulatory risk.