Enbridge, a Canadian pipeline operator, has signed definitive agreements to buy three natural gas distribution companies from Dominion Energy in a deal valued at $14bn (C$19.1bn).

The agreements are for East Ohio Gas (EOG), Questar Gas and its affiliate Wexpro companies, and the Public Service Company of North Carolina (PSNC).

Collectively, these businesses provide natural gas to roughly three million households and businesses and operate around 125,528km of pipelines for natural gas distribution, transmission, gathering and storage.

The purchase price comprises $9.4bn in cash and $4.6bn as assumed debt.

Enbridge said that the transaction establishes the "largest" natural gas utility platform (by volume) in North America, providing 9.3 billion cubic feet of gas per day to seven million customers across multiple jurisdictions.

Upon completion, Enbridge will have gas utility operations in Ohio, North Carolina, Utah, Idaho and Wyoming.

The gas utilities suit Enbridge's long-standing investment strategy of low-risk industries with predictable cash flow growth and high total returns, Enbridge added.

The deal also brings 3,000 new employees to Enbridge.

Enbridge president and CEO Greg Ebel said: "Adding natural gas utilities of this scale and quality, at a historically attractive multiple, is a once-in-a-generation opportunity.

“These acquisitions further diversify our business, enhance the stable cash flow profile of our assets and strengthen our long-term dividend growth profile.”

For Dominion Energy, the sale forms part of its ongoing business review.

Now, the business anticipates finishing the review and announcing a revised forecast in the fourth quarter of 2023.

Subject to standard regulatory approvals, the acquisitions are anticipated to close by the end of 2024.

Last week, Dominion Energy completed the sale of its 50% stake in the Maryland, US-based Cove Point LNG project to Berkshire Hathaway Energy for $3.3bn.