Enbridge Inc. has announced that it has reached a final investment decision on two attractive Gas Transmission projects.
The company signed commercial agreements for the Algonquin Reliable Affordable Resilient Enhancement project (AGT Enhancement) which is expected to increase deliveries on Algonquin Gas Transmission pipeline to existing Local Distribution Co. (LDC) customers in the US Northeast. In addition, through its Matterhorn joint venture, the company reached a final investment decision on the Eiger Express Pipeline (Eiger), an up to 2.5 billion ft3/d pipeline from the Permian Basin to the Katy area to serve the growing US Gulf Coast LNG market.
"We continue to deliver on the US$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 US Northeast, and LNG exports from the US 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."
Once completed, AGT Enhancement will deliver approximately 75 million ft3/d of incremental natural gas, under long-term contracts, to investment grade counterparties in the US Northeast. Natural gas is a key component of the energy mix in the region. This project is designed to increase reliable supply and improve affordability by reducing winter price volatility for customers. Enbridge expects to invest US$0.3 billion in system upgrades within, or adjacent to, existing rights-of-way. Subject to the timely receipt of the required government and regulatory approvals, Enbridge fully expects to complete AGT Enhancement in 2029.
Eiger is designed to transport up to 2.5 billion ft3/d of natural gas through approximately 450 miles of 42 in. pipeline from the Permian Basin in West Texas to the Katy area. Upon anticipated completion of Eiger in 2028, Enbridge expects to own a meaningful equity interest in up to 10 ft3/d of long-haul Permian Basin egress pipeline capacity that is connected to key storage facilities and LNG export hubs along the US Gulf Coast. This project is complementary to the Whistler Parent JV assets and is backed by long-term contracts with predominantly investment grade counterparties.