Enbridge bets on natural gas by acquiring three U.S. suppliers

Canadian gas pipeline giant Enbridge becomes North America's leading natural gas supplier with a $14 billion acquisition, consolidating its position in the energy sector.

Share:

Gain full professional access to energynews.pro from 4.90$/month.
Designed for decision-makers, with no long-term commitment.

Over 30,000 articles published since 2021.
150 new market analyses every week to decode global energy trends.

Monthly Digital PRO PASS

Immediate Access
4.90$/month*

No commitment – cancel anytime, activation in 2 minutes.

*Special launch offer: 1st month at the indicated price, then 14.90 $/month, no long-term commitment.

Annual Digital PRO Pass

Full Annual Access
99$/year*

To access all of energynews.pro without any limits

*Introductory annual price for year one, automatically renewed at 149.00 $/year from the second year.

Enbridge acquires U.S. companies to become leading natural gas supplier.

Enbridge becomes America’s largest natural gas supplier with $14 billion acquisition

Canadian gas pipeline giant Enbridge agreed on Tuesday with U.S.-based Dominion Energy on the takeover of three of its companies, thus becoming the continent’s largest natural gas supplier. Estimated at US$14 billion (€13 billion), the transaction will enable the Calgary-based company to double its gas distribution activities, at a time when more and more voices are calling for a move away from fossil fuels.
Calling the deal “the opportunity of a generation”, Enbridge CEO Greg Ebel sees the companies as “essential infrastructure to provide safe, reliable and affordable energy”. They “should play an essential role in the transition to sustainable energy”, he believes.
Canadian fossil fuel producers argue that natural gas will play a crucial role in the electricity grid as countries strive to reduce greenhouse gas emissions. Its supporters see it as a less polluting alternative to coal.

Although it emits less CO2 when burned than oil and coal, natural gas releases large quantities of methane, argue its critics.

Enbridge consolidates gas leadership with acquisition of Dominion Energy

The acquisitions of East Ohio Gas, Questar Gas and Public Service Co of North Carolina will amount to $9.4 billion in cash and $4.6 billion in the form of debt assumption, the company said in a statement.

They will also significantly diversify the company’s geographic footprint in Ohio, Utah, Wyoming, Idaho and North Carolina, all promising regions according to Enbridge. On closing, the Canadian giant will supply more than 2.5 billion cubic meters per day of gas to around 7 million customers in these states.

Headquartered in Richmond, Virginia, Dominion Energy is one of the country’s largest energy producers and transporters. The acquisition of the U.S. assets is due to be finalized next year, once regulatory approvals have been obtained.

Why does it matter?

This major acquisition strengthens Enbridge’s position as the leading supplier of natural gas in North America. At a time when calls to reduce dependence on fossil fuels are multiplying, this transaction underlines the continuing importance of natural gas in the energy mix. However, environmental concerns about methane emissions associated with natural gas persist, raising questions about the long-term sustainability of this energy source.

Nigeria and Libya have initiated technical discussions on a new pipeline project to transport Nigerian gas to Europe through the Mediterranean network.
Shipments of liquefied natural gas and higher pipeline flows strengthen China’s gas optionality, while testing the sanctions regime and reshaping price–volume trade-offs for the next decade.
The Canadian government aims to reduce approval delays for strategic projects, including liquefied natural gas, nuclear and mining operations, amid growing trade tensions with the United States.
Liquefied natural gas exports in sub-Saharan Africa will reach 98 bcm by 2034, driven by Nigeria, Mozambique, and the entry of new regional producers.
Backed by an ambitious public investment plan, Angola is betting on gas to offset declining oil output, but the Angola LNG plant in Soyo continues to face operational constraints.
Finnish President Alexander Stubb denounced fossil fuel imports from Russia by Hungary and Slovakia as the EU prepares its 19th sanctions package against Moscow.
Japanese giant JERA has signed a letter of intent to purchase one million tonnes of LNG per year from Alaska, as part of a strategic energy agreement with the United States.
US-based Chevron has submitted a bid with HelleniQ Energy to explore four offshore blocks south of Crete, marking a new strategic step in gas exploration in the Eastern Mediterranean.
GTT has been selected by Samsung Heavy Industries to design cryogenic tanks for a floating natural gas liquefaction unit, scheduled for deployment at an offshore site in Africa.
A consortium led by BlackRock is in talks to raise up to $10.3 billion to finance a gas infrastructure deal with Aramco, including a dual-tranche loan structure and potential sukuk issuance.
TotalEnergies commits to Train 4 of the Rio Grande LNG project in Texas, consolidating its position in liquefied natural gas with a 10% direct stake and a 1.5 Mtpa offtake agreement.
US producer EQT has secured a twenty-year liquefied natural gas supply contract with Commonwealth LNG, tied to a Gulf Coast terminal under development.
The Chief Executive Officer of TotalEnergies said that NextDecade would formalise on Tuesday a final investment decision for a new liquefaction unit under the Rio Grande LNG project in the United States.
Monkey Island LNG has awarded McDermott the design of a gas terminal with a potential capacity of 26 MTPA, using a modular format to increase on-site output density and reduce execution risks.
The Voskhod and Zarya vessels, targeted by Western sanctions, departed China’s Beihai terminal after potentially offloading liquefied natural gas from the Arctic LNG 2 project.
ADNOC Gas will join the FTSE Emerging Index on September 22, potentially unlocking up to $250mn in liquidity, according to market projections.
Norwegian company BlueNord has revised downward its production forecasts for the Tyra gas field for the third quarter, following unplanned outages and more impactful maintenance than anticipated.
Monkey Island LNG adopts ConocoPhillips' Optimized Cascade® process for its 26 MTPA terminal in Louisiana, establishing a technology partnership focused on operational efficiency and competitive gas export pricing.
NextDecade has signed a liquefied natural gas supply agreement with EQT for 1.5 million tonnes annually from Rio Grande LNG Train 5, pending a final investment decision.
Sawgrass LNG & Power has renewed its liquefied natural gas supply agreement with state-owned BNECL, consolidating a commercial cooperation that began in 2016.

Log in to read this article

You'll also have access to a selection of our best content.