Enbridge completes acquisition, bolsters its Gas Distribution and Storage Business Unit
Enbridge Inc. has officially announced the completion of its acquisition of The East Ohio Gas Company ("EOG") from Dominion Energy, Inc.
Following this acquisition, the gas utility will operate under the new name Enbridge Gas Ohio and will be integrated into Enbridge's Gas Distribution and Storage Business Unit.
EOG is recognized as a premier utility exclusively within Ohio, serving over 1.2 million customers across more than 400 communities, including major metropolitan areas.
It possesses a substantial asset base, featuring over 22,000 miles (over 35,400 km) of transmission, gathering, and distribution pipelines, underground storage facilities, and connections to several interstate pipelines and significant natural gas producers.
Michele Harradence, Enbridge's executive vice president and president of Gas Distribution and Storage, commented on the acquisition, stating, “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.”
Harradence further explained, "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.”
She also noted that with this acquisition, Enbridge now has representation in Ohio across all four of its business units, opening additional opportunities for value addition.
“We welcome EOG and its employees into the Enbridge family of companies and look forward to building long-term productive relationships with all stakeholders in Ohio and continuing to offer Ohio customers the same safe, reliable service they are accustomed to.”
In addition to the EOG acquisition, Enbridge is in the process of acquiring Questar Gas Company and its related Wexpro companies (Questar), and the Public Service Company of North Carolina, Incorporated (PSNC), with both acquisitions awaiting the necessary regulatory approvals.
These acquisitions are on track for completion in 2024 and are independent of each other.
EOG is expected to contribute more than 40 percent of the total annualized EBITDA from the trio of gas utilities that Enbridge is acquiring from Dominion, highlighting its significant role in enhancing Enbridge's financial performance.
