Spanish natural gas grid operator Enagas and its French counterparts GRTgaz and Terega have signed an agreement outlining the development of a multi-billion-euro underwater pipeline to transport hydrogen between Spain and France, Reuters reported on Tuesday, June 25, 2024. 

The BarMar pipeline is a key part of the broader H2MED initiative, which aims to create a hydrogen transport network across Europe. The pipeline project is seen as a critical step in Europe's transition to a low-carbon economy, with hydrogen playing a major role in future energy plans.

According to the report, the estimated cost of the BarMar pipeline is about 2.5 billion euros (approximately $2.67 billion). The agreement establishes a framework for feasibility studies, final investment decisions, and the creation of a joint venture to potentially develop the project.

Enagas will hold a 50% stake in the venture, with GRTgaz and Terega owning 33.3% and 16.7%, respectively. German gas grid operator Open Grid Europe (OGE) is also involved in the H2MED project.

In a separate agreement, Enagas and Portugal's REN gas network operator strengthened their partnership to develop a green hydrogen pipeline within the Iberian Peninsula.