Enbridge works on two U.S. gas transmission projects

Executive Summary

• Enbridge Inc. has reached a final investment decision on two major gas transmission projects: the Algonquin Reliable Affordable Resilient Enhancement (AGT enhancement) and the Eiger Express Pipeline.
• The AGT enhancement project involves $300 million in U.S. system upgrades to increase deliveries to U.S. Northeast LDC customers, with completion expected in 2029.
• The Eiger Express Pipeline, developed through a joint venture, will transport up to 2.5 Bcf/d of natural gas from the Permian basin to the U.S. Gulf Coast to serve the LNG market, with anticipated completion in 2028.

Key Details

• AGT Enhancement Project:

  • Objective: Increase deliveries on the Algonquin gas transmission pipeline to existing local distribution company (LDC) customers in the U.S. Northeast.
  • Capacity: Deliver approximately 75 Mmcf/d (million cubic feet per day) of incremental natural gas under long-term contracts.
  • Counterparties: Investment grade counterparties in the U.S. Northeast.
  • Investment: Enbridge expects to invest $300 million (U.S.) in system upgrades within or adjacent to existing rights of way.
  • Timeline: Subject to regulatory approvals, completion is expected in 2029.
  • Strategic Benefit: Designed to increase reliable supply, improve affordability, and reduce winter price volatility.

• Eiger Express Pipeline Project:

  • Structure: Developed through Enbridge's Matterhorn joint venture.
  • Capacity: Up to 2.5 billion cubic feet per day (Bcf/d).
  • Route: Approximately 450 miles of 42-inch pipeline from the Permian basin in West Texas to the Katy area.
  • Market Focus: Serve the growing U.S. Gulf Coast LNG (liquefied natural gas) market.
  • Equity Interest: Upon completion, Enbridge expects to own a meaningful equity interest in up to 10 Bcf/d of long-haul Permian basin egress pipeline capacity connected to key storage facilities and LNG export hubs.
  • Contracts: Backed by long-term contracts with predominantly investment-grade counterparties.
  • Timeline: Anticipated completion in 2028.
  • Strategic Context: Complementary to Whistler Parent JV assets; part of the $23-billion gas transmission opportunity pipeline announced at the March investor day.

Notable Quotes

• "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 and 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."