The pair have reached a non-binding agreement to advance discussions on setting up joint platforms focused on refining, chemicals, trading, green molecules, low-carbon fuels, and mobility fuel.

If approved, it would see two new platforms established: a mobility segment focused on fuel retail, convenience, and mobility services; and an industrial arm for refining, trading, chemicals, and low-carbon fuels, including biofuels and hydrogen.

The companies expect to reach an agreement by mid-2026.

“We have the opportunity to create major European players in Iberia,” said Galp Chair Paula Amorim. “This opportunity reinforces our ability to support and promote a just energy transition.”

Aimed at creating “two leading energy companies in the Iberian Peninsula”, the deal would see assets, capabilities, and workforces across Spain and Portugal to bolster investment capacity.

It could lend the industrial platform an aggregated crude processing capacity close to 700 kbpd across three industrial sites. The mobility platform could have a service network of around 3,500.

Under current plans, Moeve’s current shareholders, Abu Dhabi state-owned investor Mubadala and American private equity firm Carlyle, would hold a “controlling stake” in the combined platform. Galp would hold above 20%, while the retail mobility outfit would be co-controlled by Moeve shareholders and Galp.

Moeve CEO Maarten Wetselaar, said the combination could attract “long-term capital” and “accelerate the deployment of solutions that support competitiveness, decarbonisation, and economic growth.”

Both Moeve and Galp are among the European refinery players looking to build green hydrogen capacity.

Galp is currently constructing a 100MW electrolyser plant at its refinery in Sines, which would replace 15,000 tonnes of existing grey hydrogen use with green. It is expected to come online later this year.

Moeve has also moved to start constructing the first phase of its 2GW green hydrogen hub, spread across two sites in Huelva and Cádiz, where it is exploring e-fuel production.

The proposed tie-up underscores a growing push for consolidation among Europe’s energy majors as they seek the scale and balance-sheet strength needed to fund the transition.

A combined platform bringing together Moeve and Galp would create one of Iberia’s largest downstream players, with the financial firepower and operational breadth to sustain investment in refining while accelerating low-carbon fuels and green hydrogen.