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Pembina completes acquisition of Enbridge assets

Published by , Editorial Assistant
World Pipelines,

Pembina Pipeline has completed the acquisition of Enbridge's interests in the Alliance Pipeline, Aux Sable and NRGreen joint ventures (JVs), valued at CAN$3.1 billion (US$2.3 billion), GlobalData has reported.

The deal, which was announced in December 2023, expands Pembina's midstream asset portfolio across Canada and the US.

The Alliance Pipeline, a 3848 km long integrated natural gas gathering and transmission system, connects the Western Canadian Sedimentary Basin and the Williston Basin to the Chicago market hub.

The acquisition includes 100% of the equity interests in the Alliance Pipeline, Aux Sable’s Canadian operations and NRGreen, along with approximately 85.4% of Aux Sable’s US operations.

Aux Sable, which manages natural gas liquids (NGLs) extraction and fractionation facilities, provides critical connectivity to NGL hubs in the US.

NRGreen JVs operated five waste heat recovery facilities along the Alliance Pipeline in Canada as of 31 July 2023.

Pembina has also assumed the role of operator for all Alliance Pipeline, Aux Sable and NRGreen businesses.

Pembina President and CEO Scott Burrows said: "We are excited to further enhance our business by increasing our ownership in Alliance and Aux Sable. Aligning with Pembina’s strategy, this acquisition grows and strengthens our existing franchise and pro-vides greater exposure to resilient end-use markets.

"With completion of the transaction, we will prioritise integrating these businesses and pursuing the near-term synergies we have identified to extract greater value from these unique and exceptional assets."

For Enbridge, the divestiture is a part of its financing strategy.

The proceeds from the sale will contribute to funding its strategic US gas utilities acquisitions and aid in debt reduction.

In September 2023, Enbridge announced definitive agreements to acquire three natural gas distribution companies from Dominion Energy for US$14 billion (CAN$18.98 billion).

Additionally, Enbridge recently entered a JV with WhiteWater, I Squared Capital and MPLX to enhance natural gas supply connectivity from the Permian Basin to the US Gulf Coast.

This JV is set to develop and operate new pipeline and storage assets to support the growing LNG and US Gulf Coast markets.

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