CALGARY — Enbridge Inc. is selling its stakes in the Alliance pipeline and Aux Sable gas processing facility to Pembina Pipeline Corp. for $3.1 billion.
The Alliance pipeline is a 3,848-kilometre pipeline stretching southeast from sa国际传媒 that brings gas into Chicago's Aux Sable, one of the largest natural gas liquids processing facilities in North America.
Enbridge currently owns 50 per cent of Alliance and 42.7 per cent of Aux Sable, while Pembina Pipeline owns the remaining 50 per cent of Alliance and 42.7 per cent of Aux Sable.
As part of the transaction, Pembina, which is the current operator of Aux Sable, will become the sole operator of Alliance.
Enbridge said Wednesday the proceeds from the sale will fund a portion of its previously announced US$14-billion acquisition of three U.S.-based gas utilities from Virginia-based Dominion Energy.
That deal, which was announced in September, is expected to close next year and will see Enbridge double the scale of its gas utility business through the purchase of the East Ohio Gas Company, Questar Gas Company and its related Wexpro companies, and the Public Service Company of North Carolina.
For its part, Pembina said the acquisition increases the company's exposure to natural gas and natural gas liquids, as well as expanding Pembina's presence and reputation in the U.S. market.
Pembina also said that supply and demand projections for the North American natural gas market support a favourable outlook for both Alliance and Aux Sable.
The company said the expected completion of LNG sa国际传媒 as well as a projected significant expansion of U.S. Gulf Coast LNG (liquefied natural gas) export capacity should boost demand for natural gas transportation.
The $3.1 billion purchase price includes $327 million of assumed debt.
The deal is subject to regulatory approval and expected to close in the first half of 2024.
This report by The Canadian Press was first published Dec. 13, 2023.
Companies in this story: (TSX:ENB; TSX:PPL)
The Canadian Press
