(Montreal) The Canadian gas pipeline giant Enbridge agreed on Tuesday with the American Dominion Energy on the acquisition of three of its companies, thus becoming the largest supplier of natural gas on the continent.
Estimated at US$14 billion, the transaction will allow the Calgary-based company to double its gas distribution activities, at a time when more and more voices are calling for a move away from fossil fuels.
Calling the deal an “opportunity of a generation,” Enbridge CEO Greg Ebel sees these companies as “essential infrastructure to provide safe, reliable and affordable energy.”
They “should play a critical role in the transition to sustainable energy,” he said.
Canadian fossil fuel producers argue that natural gas will play a crucial role in the electricity grid as countries work to reduce greenhouse gas emissions. Its supporters see it as an alternative to coal, because it is less polluting.
Although it emits less CO2 when burned than oil and coal, natural gas releases large amounts of methane, critics argue.
The acquisitions of East Ohio Gas, Questar Gas and Public Service Co of North Carolina will amount to $9.4 billion in cash and $4.6 billion in debt assumptions, the company said. company in a press release.
They will also significantly diversify the company’s geographic footprint into Ohio, Utah, Wyoming, Idaho and North Carolina, promising regions according to Enbridge.
Upon closing of the transaction, the Canadian giant will supply more than 2.5 billion cubic meters per day of gas to approximately 7 million customers in these states.
Dominion Energy, headquartered in Richmond, Virginia, is one of the nation’s largest energy producers and transporters.
The acquisition of the US assets should be finalized next year after obtaining regulatory approvals.
