Canada’s Enbridge has taken a key step in its energy expansion strategy by confirming investment in two major natural gas transportation developments: the upgrade of the Algonquin system in the northeastern United States and the construction of the Eiger Express pipeline from the Permian Basin to the Gulf Coast.
Gas transmission projects
To improve the reliability and affordability of gas supply, Enbridge will advance the Algonquin Reliable Affordable Resilient Enhancement (AGT Enhancement) project, which will increase the capacity of the Algonquin pipeline by 75 million cubic feet per day. This increase, for local customers in the northeast, is supported by long-term agreements with investment-grade counterparties.
[post_relacionado]The project contemplates a $300 million investment in infrastructure located within or adjacent to existing rights-of-way. If the required permits are obtained on time, completion is scheduled for 2029.
In parallel, Enbridge, through its interest in the Matterhorn joint venture, moved forward with the final investment decision to develop the Eiger Express pipeline. This infrastructure will transport up to 2.5 billion cubic feet per day of natural gas 450 miles from the Permian Basin in Texas to the Katy area, where it connects to key storage and export hubs for the LNG market.
Eiger is scheduled to come online in 2028 and will bolster Enbridge’s long-haul network, allowing it to reach a transportation capacity of up to 10 billion cubic feet per day from the West Texas region.
Both projects are in line with the company’s energy investment plans presented at its last investor day. Enbridge consolidates its position as a major player in the supply of natural gas in North America, strengthening its transportation network and responding to growing demand both regionally and internationally.
Executive Vice President Cynthia Hansen mentioned that these decisions reaffirm Enbridge’s ability to execute large-scale projects and increase the resiliency of the gas system. With these moves, the company is strengthening its growth prospects towards the end of the decade.
Source and photo: Enbridge