Enagás plans to enter negotiations with the new Peruvian government for a conflict-friendly agreement inaugurated by Gasoducto Sur Peruano (GSP), the more than 1,000 km gas pipeline project that was paralyzed in 2017.
At a conference with analysts to present the results of the first semester, Enagás president, Antonio Lardín, confirmed that the company is waiting for the inauguration of Peru’s new president, Pedro Castillo, which will take place on Wednesday, to “contact” the new government of the country and “to demonstrate a clear will to reach agreements in arbitration.”
However, the director noted that this solution is “parallel” and that an arbitration process is “always” possible, such as the one the company opened in ICSID to claim more than €400 million (US$471 million) from the Peruvian government. Due to the project being discontinued in 2017.
In fact, this arbitration process is continuing on its track as per the planned procedural calendar and the group’s legal advisors expect that the judgment will be delivered by the end of 2022.
asset turnover. Regarding the asset rotation plan that the company plans to undertake to maximize shareholder value, Larden emphasized that it will depend on the development of markets and the outlook for each asset, but that it will be worked on “this year as well. The next day.”
Regarding the group’s net profit forecast for the year of 380 million euros ($448 million), Larden highlighted the good results the group achieved in the first half of this year, with a net profit of 213.1 million euros ($251 million), thanks to of the group’s investing companies’ behavior and efficiency “efforts”, although they preferred to be “prudent” in order to record an improvement at the end of the year with respect to the expected guidance.
Opportunities in Europe and the USA. On the other hand, Enagás emphasized that it sees future opportunities for growth in Europe and the United States, as a gas infrastructure operator, in the development of renewable gases and hydrogen, which will play an “important” role in decarbonization.
In this sense, Larden assessed the EU’s “Fit-for-55” package very positively and stressed that the entire gas network infrastructures are “well prepared to help deploy renewable gases”, which will be necessary “to achieve the ambitious goals set”.
“It is there that Technical Support Officers (TSOs) can modestly play a very important role,” Larden said, arguing that in the next three to five years there will be progress in project development.
Regarding the United States, the group’s CEO, Marcelino Origa, noted that with the change in the country’s management after Joe Biden’s accession to the White House, there is a commitment to hydrogen “green and blue.”
In this regard, through its American subsidiary Tallgrass – which has already acquired a small blue hydrogen production project – the director was convinced that there would be “many opportunities” for growth in this area.