Enbridge Completes $4.3bn Acquisition of Questar Gas from Dominion Energy
06.05.2024 By Tank Terminals - NEWS

June 05, 2024 [NS Energy]- Enbridge has closed the previously announced $4.3bn acquisition of American natural gas utility Questar Gas and its cost-of-service gas supply company Wexpro from Dominion Energy.

 

The transaction was announced in September 2023. It is part of a larger $14bn agreement between Enbridge and Dominion Energy, involving two other natural gas distribution companies, which are East Ohio Gas and Public Service Company of North Carolina.

Enbridge closed the $6.6bn acquisition of Ohio natural gas utility East Ohio Gas in March 2024. The acquisition of Public Service Company of North Carolina by the Canadian pipeline and energy firm is expected to close later this year subject to receipt of the mandated regulatory approvals.

Questar Gas, which covers more than 33,796km of system infrastructure, serves nearly 1.2 million customer accounts in Utah, Wyoming, and Idaho. Wexpro, on the other hand, supplies natural gas to Questar Gas under a cost-of-service agreement.

According to Enbridge, Questar Gas will operate in Utah under the name Enbridge Gas Utah, in Wyoming as Enbridge Gas Wyoming, and in Idaho as Enbridge Gas Idaho.

Questar will become a part of Enbridge’s gas distribution and storage business unit. Its assets consist of natural gas distribution and transmission pipelines, a liquefied natural gas storage facility for improved system reliability, and connections to various interstate natural gas pipelines.

Enbridge executive vice president and gas distribution and storage president Michele Harradence said: “Questar Gas and Wexpro enhance the scale and breadth of our existing low risk utility business model and support our long-term dividend growth profile by providing stable, predictable cash flows.

“We welcome Questar Gas and Wexpro employees into the Enbridge family of companies and look forward to building long-term productive relationships with all of their stakeholders in Utah, Wyoming, and Idaho.”

The collective contributions from Questar and East Ohio Gas, now operating as Enbridge Gas Ohio, are anticipated to make up roughly 80% of the total annualised EBITDA from the three gas utilities Enbridge is acquiring from Dominion Energy.

 

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