Canadian pipeline operator Enbridge has announced the completion of its acquisition of the East Ohio Gas Company (EOG) from Dominion Energy.
This transaction forms part of the deals signed by Enbridge in 2023 to buy three natural gas distribution companies from Dominion Energy for $14bn (C$19.1bn).
The agreements signed in September 2023 are for EOG, Questar Gas and its affiliate Wexpro companies, and the Public Service Company of North Carolina (PSNC).
Together, these businesses provide natural gas to around three million households and businesses and operate around 125,528km of pipelines for natural gas distribution, transmission, gathering and storage.
With the completion of the deal, gas utility EOG will be doing business as Enbridge Gas Ohio. It will join Enbridge's gas distribution and storage business unit.
EOG serves more than 1.2 million customers across more than 400 communities in Ohio, including major metropolitan areas.
Its asset portfolio includes more than 22,000 miles (over 35,400km) of transmission, gathering and distribution pipelines, underground storage, and interconnections to multiple interstate pipelines and large natural gas producers.
Enbridge gas distribution and storage executive vice-president and president Michele Harradence said: “The addition of a strong Ohio-based gas utility company is a great strategic fit for Enbridge. It further diversifies our business and enhances the stable cash flow profile of our assets.
“Natural gas utilities have long useful lives and are 'must-have' infrastructure for providing safe, reliable and affordable energy. This gas utility will help blend and extend our cash flow growth outlook through the end of the decade by adding a steady, regulated investment that supports our long-term dividend profile.
“With this acquisition, Enbridge has all four of its business units represented in Ohio, providing further value-add opportunities.”
Subject to regulatory approvals, Enbridge expects to close the acquisitions of Questar Gas Company and PSNC in 2024. These purchases are independent of each other and are not cross-conditioned.
Upon completion of these deals, Enbridge will have gas utility operations in Ohio, North Carolina, Utah, Idaho and Wyoming.
For Dominion Energy, the sale forms part of its ongoing business review.
