Portuguese oil & gas company Galp has announced a non-binding agreement with Spanish energy firm Moeve to hold advanced talks to combine their downstream businesses.

This would involve the creation of two new companies, which Galp calls “RetailCo” and “IndustrialCo”.

While RetailCo would combine Galp and Moeve’s service station networks to become the largest operator in the Iberian peninsula, IndustrialCo would focus on refining and fuel supply — including the production of green hydrogen and its derivatives.

Galp highlights that this would include its existing 100MW green hydrogen project under construction at its refinery in Sines, Portugal, with Moeve’s proposed gigawatt-scale Andalusian Green Hydrogen Valley in Spain.

A final investment decision has not yet been taken on the first 400MW phase of the Andalusian hub, Project Onuba, although Moeve had secured more than €303m from the Spanish government last year.

“We expect to take [a] final investment decision on the Onuba project in the coming months,” a spokesperson for Moeve tells Hydrogen Insight.
However, the company had previously given a similar timeline back in May 2025, citing grid connection as the only issue holding up a final investment decision — although Moeve has not publicly provided a further update on how long it will take to resolve.

Meanwhile, Galp’s 100MW Sines project is slated to start operations this year, having received its first set of electrolysers from Plug Power in October.

The proposed IndustrialCo would have a combined crude oil processing capacity close to 700,000 barrels of oil per day across three industrial sites.

A potential agreement on the tie-up is expected by the middle of this year. However, the final deal will be subject to relevant third-party authorisations and regulatory approvals.

“I am extremely pleased that we have reached this preliminary agreement and launched such a major European strategic discussion,” said Paula Amorim, the chair of Galp’s board of directors.

“Galp’s growth vision has always been based on partnerships with highly credible operators that have consistently proven to be value accretive. By combining Galp’s and Moeve’s complementary capabilities and expertise on downstream operations, we have the opportunity to create major European players in Iberia, each benefiting from greater focus, tailored capital allocation, and key flexibility to drive sustainable growth and value.

“It is my firm belief that this opportunity reinforces our ability to support and promote a just energy transition, capable of addressing evolving market needs and ensuring safe and responsible energy supply to Iberia.”