Submitted by Enbridge Inc.
Enbridge acquires trio of U.S. companies from Dominion Energy Inc., creating North America’s largest natural gas utility franchise
About 7,000 employees.
Delivering more than 9 billion cubic feet a day of natural gas.
Destination? About 7 million customers.
That’s about the size of it—North America’s largest natural gas utility franchise, that is—following a trio of transactions announced today between Enbridge and Dominion Energy, Inc.
From Dominion Energy, for an aggregate purchase price of US$14 billion (C$19 billion), Enbridge is acquiring:
With the delivery of 9.3 billion cubic feet per day (Bcf/d) of gas to customers in the U.S. and Canada, upon closing, Enbridge’s gas utility business will be the largest by volume in North America.
“Adding natural gas utilities of this scale and quality, at a historically attractive multiple, is a once-in-a-generation opportunity. The transaction also reinforces our position as the first-choice energy delivery company in North America,” says Greg Ebel, Enbridge’s President and CEO.
“The assets we are acquiring have long, useful lives—and natural gas utilities are ‘must-have’ infrastructure for providing safe, reliable and affordable energy,” adds Mr. Ebel. “The entire Enbridge team is committed to working with the EOG, Questar and PSNC teams, and to investing in the communities they serve. We look forward to serving our customers with dedication, and to providing them with safe, reliable and affordable energy service for years to come.”
With the addition of these gas utility operations in Ohio, Utah, North Carolina, Wyoming and Idaho, Enbridge now has a significant presence in the U.S. utility sector.
Enbridge’s primary gas utility, Enbridge Gas Inc., has a storied 175-year history, and serves about 75% of residents in the Canadian province of Ontario. Enbridge Gas and its affiliate, Gazifère, presently provide safe, reliable service through 3.9 million residential, commercial, institutional and industrial meter connections in Ontario and Quebec.
Among the details of today’s acquisitions:
“Today, and for the long-term, natural gas will remain essential for achieving North America’s energy security, affordability and sustainability goals,” says Michele Harradence, Enbridge Executive Vice President and the President of our gas utility business. “We are excited to welcome more than 3,000 new employees into the Enbridge family. In addition, we intend to continue the robust social, community and diversity, equity and inclusion initiatives that each gas utility has committed to.”
Like Enbridge, all three of these companies have well-developed emission reduction plans, have committed to achieving net-zero greenhouse gas (GHG) emissions by 2050, and are already exploring leveraging the critical energy infrastructure they operate to transport low-carbon energy sources such as renewable natural gas and hydrogen.
“These gas utilities have each committed to achieving net-zero greenhouse gas emissions by 2050, and are expected to play a critical role in enabling a sustainable energy transition,” notes Mr. Ebel.
The acquisition of each gas utility is expected to close in 2024.
At Enbridge, our name spells out our mission: a bridge to a sustainable energy future. That bridge safely connects millions of people around the world to the energy they rely on every day, fueling quality of life. Whether it’s natural gas, oil or renewable power, the energy we deliver through networks spanning North America and our growing European offshore wind portfolio helps to heat homes, feed families, fuel vehicles and power industry. We’re investing in modern energy infrastructure to sustain access to secure, affordable energy. We’re also building on two decades of experience in renewable energy to advance new low-carbon energy technologies including hydrogen, renewable natural gas and carbon capture and storage. We’re committed to reducing the carbon footprint of the energy we deliver, and to achieving net zero greenhouse gas emissions by 2050.
Headquartered in Calgary, Alberta, Enbridge’s common shares trade under the symbol ENB on the Toronto (TSX) and New York (NYSE) stock exchanges. To learn more, visit us at Enbridge.com
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