MADRID, July 10 (Reuters) - Spanish gas grid operator

Enagas said on Wednesday it has agreed to sell its

30.2% stake in U.S. energy infrastructure company Tallgrass

Energy to U.S. investment firm Blackstone for $1.1

billion.

Enagas will use the proceeds of the sale to finance green

hydrogen projects, the company said in a statement.

The transaction, which is expected to close by the end of

this month, will bring Enagas a 360 million euro ($389.38

million) capital gain, the company said.

The company - in which the Spanish state owns a 5% stake -

is looking to transition from its traditional role as natural

gas grid operator to managing a network of hydrogen

infrastructure, taking advantage of the Spanish government's

ambitious plans to develop green hydrogen production

infrastructure.

($1 = 0.9246 euros)

(Reporting by Inti Landauro; Editing by Muralikumar

Anantharaman)