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.
| Sectors | Gas, Natural Gas |
|---|---|
| Themes | Investments & Transactions, Corporate Investment |
Enbridge acquires U.S. companies to become leading natural gas supplier.
Enbridge becomes America’s largest natural gas supplier with $14 billion acquisition
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.
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.
