Endesa decided to halt the sale process of its marketing gas portfolio in Spain, deeming that the asset value cannot be crystallized at current prices. The group had begun operations a year ago, hoping that the roughly $570 million hit it faced could be recovered over time. An arbitration award involving the state energy company QatarEnergy Train weighed on decisions around this portfolio.
Endesa Chief Executive Officer Jose Bogas confirmed to Europa Press that the liquidation of these gas assets has been cancelled. This move is not included in the 2026 strategic plan update. The leadership had faced a collapse in gas prices and received several offers from counterparties that were not considered adequate, dampening the appeal of a sale at those prices.
Enel remains the principal shareholder of Endesa, holding around 70 percent of the company. The group had signaled an intention to exit the business in late 2022 when gas price futures hovered near 100 euros; more recently, those prices have trended downward.
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With regard to the arbitration decision that revisits a long term liquefied natural gas supply contract price, Bogas stated that the contract formula will stay competitive and that the move could be offset in the coming years. The firm emphasised that the shift in the contract and the reference to TTF created a negative impact, yet the Brent component showed a decline as well. The company believes the current formula remains aligned with market quotes, and it expects that existing futures trading will help mitigate penalties through mid-2025 when the contract ends.
That stance underscores the resilience of Endesa as it navigates price volatility. The company pointed out that the structure of its procurement and the flexibility of its LNG agreements keep the operation financially viable, even as global energy markets swing. The management pointed to the option of offsetting downside through hedges and market mechanisms available in the current environment.
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Bogas also noted that Endesa is examining the possibility of appealing the arbitration decision, though he acknowledged that odds of overturning it are not high. He explained that while it is straightforward to challenge the ruling, achieving a reversal is more challenging.
A bold and sustained strategic plan
Regarding the energy company’s plan for 2024 to 2060, Bogas described the strategy as bold and ongoing. The company intends to stay committed to its course even in the face of high inflation, higher interest rates, and regulatory uncertainty. A substantial investment frame is planned, with roughly 9 billion euros slated for the next three years, recognizing that many issues remain to be resolved. This approach signals a long term emphasis on growth while maintaining financial discipline.
The plan aims to leverage a solid financial base and to strengthen partnerships with stable frontline investors who can participate in renewable projects. The company views this collaborative approach as essential to advancing its transition to cleaner energy sources and to expanding its renewable energy footprint.
As part of this strategy, partners and asset rotations are expected to contribute around 2.8 billion euros to the plan through minority stakes in diverse renewable portfolios, with a strong emphasis on photovoltaics. This collaborative model seeks to accelerate project development while spreading risk across experienced players in the energy sector.