By Robb M. Stewart
Enbridge has given the go-ahead to a pair of gas-transmissions projects that will supply the U.S. as it seeks to capitalize on growing demand for natural gas.
The Canadian energy-infrastructure company said it signed commercial agreements for its Algonquin Reliable Affordable Resilient Enhancement project, which is expected to increase deliveries on the Algonquin Gas Transmission pipeline to existing local customers.
Enbridge, though the Matterhorn joint venture with Oklahoma-based Oneok, Austin-based WhiteWater and Ohio-based MPLX, also reached a final investment decision on the up to 2.5 billion cubic feet a day Eiger Express Pipeline from the Permian Basin to the Katy area that will serve the U.S. Gulf Coast liquefied natural gas market.
The developments are part of 23 billion Canadian dollars ($16.7 billion) in gas-transmission opportunities the company identified in March.
Cynthia Hansen, president of gas transmission, said the two investments add visibility and extend Enbridge's growth outlook through the end of the decade.
Once completed, the AGT Enhancement project will deliver about 75 million cubic feet a day of incremental natural gas, under long-term contracts to counterparties in the U.S. Northeast.
The Calgary, Alberta, company said it expects to invest $300 million billion in system upgrades within or adjacent to existing rights-of-way. The company expects to complete AGT Enhancement in 2029, subject to the required government and regulatory approvals.
The Eiger project is designed to transport natural gas through roughly 450 miles of 42-inch pipeline from the Permian Basin in West Texas to the Katy area. Completion is expected in 2028, and Enbridge expects to own a meaningful equity interest in up to 10 billion cubic feet a day of long-haul Permian Basin pipeline capacity that is connected to key storage facilities and LNG export hubs along the U.S. Gulf Coast.
Write to Robb M. Stewart at robb.stewart@wsj.com
(END) Dow Jones Newswires
September 02, 2025 07:42 ET (11:42 GMT)
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