The logo of Calgary-based Enbridge, one of North America’s largest energy infrastructure companies, is displayed during the LNG 2023 energy trade show in Vancouver, British Columbia, Canada, July 12, 2023. REUTERS/Chris Helgren acquires licensing rights
Sep 5 (Reuters) – Enbridge (ENB.TO) said on Tuesday it has struck three separate deals with Dominion Energy (DN) to sell East Ohio Gas Co, Questar Gas and Public Service Company of North Carolina for aggregate value of $14 billion to buy, creating North America’s largest natural gas supply platform.
The deals include $9.4 billion in cash and $4.6 billion in assumed debt, Enbridge said in a statement.
U.S.-listed Enbridge shares fell nearly 7% in extended trading.
Upon closing of the contract, expected in 2024, Enbridge will add gas utility operations in Ohio, North Carolina, Utah, Idaho and Wyoming, providing a significant presence in the US utility sector.
“The acquisition of these natural gas suppliers makes a lot of strategic and financial sense. Enbridge is currently the only major pipeline and midstream company to own a regulated gas utility, and today we further strengthened that position by doubling the size of our GDS (gas distribution and storage) business,” said Patrick Murray, Enbridge’s CFO.
Once the contracts close, Enbridge’s gas supply business would be the largest in North America by volume, with a combined tariff basis of over CA$27 billion (US$19.79 billion) and supplying over 9 billion cubic feet per day (bcfpd) of gas to about 7 million Customers.
($1 = 1.3643 Canadian dollars)
Reporting by Arunima Kumar in Bengaluru; Edited by Shailesh Kuber
Our standards: The Thomson Reuters Trust Principles.
Comments are closed.