Enbridge Announces Two U.S. Gas Transmission Projects
As it continues to capitalize on growing natural gas demand, Calgary-based Enbridge Inc. announced two new U.S. gas transmission projects.
On Sept. 2, the company announced that it signed commercial agreements for the Algonquin Reliable Affordable Resilient Enhancement project (AGT Enhancement). The project is expected to increase deliveries on Algonquin Gas Transmission pipeline to existing local distribution company (LDC) customers in the Northeast United States.
In addition, through its Matterhorn joint venture, Enbridge reached a final investment decision on the Eiger Express Pipeline (Eiger). This is an up to 2.5 billion cubic feet per day (Bcf/d) pipeline from the Permian Basin to the Katy area. It will serve the growing U.S. Gulf Coast LNG market.
“We continue to deliver on the $23 billion of gas transmission opportunities we laid out at our Investor Day in March. Today’s project announcements highlight the benefits of Enbridge’s scale. They also demonstrate our ability to support growing natural gas demand in the U.S. Northeast, and LNG exports from the U.S. Gulf Coast,” said Cynthia Hansen, executive vice president and president, gas transmission. “These investments add visibility to, and extend, our growth outlook through the end of the decade.”
Project Details
Once completed, AGT Enhancement will deliver approximately 75 Mmcf/d of incremental natural gas, under long-term contracts, to investment grade counterparties in the U.S. Northeast. Natural gas is a key component of the energy mix in the region. This project is designed to increase reliable supply and improve affordability. It aims to reduce winter price volatility for customers. Enbridge expects to invest US$0.3 billion in system upgrades within, or adjacent to, existing rights-of-way. Subject to the timely receipt of the required government and regulatory approvals, Enbridge fully expects to complete AGT Enhancement in 2029.
Eiger is designed to transport up to 2.5 Bcf/d of natural gas through approximately 450 miles of 42-inch pipeline. It goes from the Permian Basin in West Texas to the Katy area. 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. This is connected to key storage facilities and LNG export hubs along the U.S. Gulf Coast. This project is complementary to the Whistler Parent JV assets. It is backed by long-term contracts with predominantly investment grade counterparties.
SOURCE – Enbridge Inc.
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