Enbridge Announces Final Investment Decision on Two Major Gas Transmission Projects

Strategic Insights -

Enbridge Inc. has reached a final investment decision on two attractive Gas Transmission projects, the Algonquin Reliable Affordable Resilient Enhancement project (AGT Enhancement) and the Eiger Express Pipeline (Eiger). AGT Enhancement is expected to increase deliveries on Algonquin Gas Transmission pipeline to existing Local Distribution Company (LDC) customers in the U.S. Northeast, while Eiger will transport up to 2.5 billion cubic feet per day (Bcf/d) of natural gas from the Permian Basin to the Katy area to serve the growing U.S. Gulf Coast LNG market. These investments add visibility to, and extend, Enbridge's growth outlook through the end of the decade.

Key Takeaways:

  • Enbridge has reached a final investment decision on the Algonquin Reliable Affordable Resilient Enhancement project (AGT Enhancement), which will increase deliveries on Algonquin Gas Transmission pipeline to existing Local Distribution Company (LDC) customers in the U.S. Northeast.
  • AGT Enhancement is expected to deliver approximately 75 Mmcf/d of incremental natural gas, under long-term contracts, to investment grade counterparties in the U.S. Northeast.
  • The project is designed to increase reliable supply and improve affordability by reducing winter price volatility for customers.
  • Enbridge expects to invest US$0.3 billion in system upgrades within, or adjacent to, existing rights-of-way.
  • Enbridge has reached a final investment decision on the Eiger Express Pipeline (Eiger), which will transport up to 2.5 Bcf/d of natural gas from the Permian Basin to the Katy area.
  • Eiger is designed to transport natural gas through approximately 450 miles of 42-inch pipeline.
  • Upon anticipated completion of Eiger in 2028, Enbridge expects to own a meaningful equity interest in up to 10 Bcf/d of long-haul Permian Basin egress pipeline capacity.
  • Both projects are backed by long-term contracts with predominantly investment grade counterparties.

Statistics:

  • AGT Enhancement is expected to deliver approximately 75 Mmcf/d of incremental natural gas to the U.S. Northeast.
  • Enbridge expects to invest US$0.3 billion in system upgrades within, or adjacent to, existing rights-of-way for AGT Enhancement.
  • Eiger will transport up to 2.5 Bcf/d of natural gas from the Permian Basin to the Katy area.
  • Eiger will span approximately 450 miles of 42-inch pipeline.
  • Upon completion, Eiger will give Enbridge a meaningful equity interest in up to 10 Bcf/d of long-haul Permian Basin egress pipeline capacity.

Sources:

  • Enbridge Inc. (TSX: ENB) (NYSE: ENB)
  • PRNewswire, "Enbridge Announces Final Investment Decision on Two Major Gas Transmission Projects"
  • Enbridge Inc. website, about.enbridge.com
  • Enbridge Inc. website, investor.relations.enbridge.com