The Canadian pipeline operator Enbridge has announced that it will purchase three gas distribution companies from the US’ Dominion Energy for US$14bn, thus establishing North America’s largest natural gas provider and doubling its gas distribution business. The bought entities are The East Ohio Gas Company (EOG), Questar Gas Company (including its related Wexpro companies) and Public Service Company of North Carolina (PSNC). The purchase comprises US$9.4bn of cash consideration and US$4.6bn of assumed debt.
With these acquisitions, Enbridge will be able to deliver 9.3 bcf/d (96 bcm/year) of natural gas to around 7 million customers across North America. The deal is expected to be completed in 2024, subject to the required approvals.
For Dominion Energy, these divestments are the latest following a new strategy announced last year by the company, which aims to focus on its regulated operations. In July 2023, Dominion notably agreed to sell its 50% stake in Cove Point LNG to Berkshire Hathaway for US$3.3bn.