Uneoth.com

The News Source You've Been Waiting For

Finance

Enbridge will sell Alliance, Aux Sable stakes to Pembina Pipeline for $3.1B

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 B.C. 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.


Click to play video: 'Selwyn Township businesses potentially out thousands as Enbridge Gas pipeline project halted'


Selwyn Township businesses potentially out thousands as Enbridge Gas pipeline project halted


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.

Story continues below advertisement

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 Canada 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.


Click to play video: 'Enbridge sells minority stake in 7 Alberta pipelines to Indigenous communities'


Enbridge sells minority stake in 7 Alberta pipelines to Indigenous communities


This report by The Canadian Press was first published Dec. 13, 2023.

Story continues below advertisement

 

&copy 2023 The Canadian Press

LEAVE A RESPONSE

Your email address will not be published. Required fields are marked *