Enbridge Inc. announced that it has reached a final investment decision on two significant gas transmission projects. The company has signed commercial agreements for the Algonquin Reliable Affordable Resilient Enhancement project (AGT Enhancement), which will expand capacity on the Algonquin Gas Transmission pipeline to serve existing Local Distribution Company (LDC) customers across the U.S. Northeast. In addition, through its Matterhorn joint venture, Enbridge has reached an investment decision on the Eiger Express Pipeline, designed to move up to 2.5 billion cubic feet per day (Bcf/d) of natural gas from the Permian Basin to the Katy area in support of rising LNG market demand along the U.S. Gulf Coast.
“We continue to deliver on the $23 billion of Gas Transmission opportunities we laid out at our Investor Day in March. Today’s project announcements highlight the benefits of Enbridge’s scale and demonstrate our ability to support growing natural gas demand in the U.S. Northeast, and LNG exports from the U.S. Gulf Coast,” said Cynthia Hansen, Executive Vice President and President, Gas Transmission. “These investments add visibility to, and extend, our growth outlook through the end of the decade.”
Once operational, AGT Enhancement is expected to provide approximately 75 million cubic feet per day (Mmcf/d) of incremental natural gas under long-term contracts to investment-grade counterparties in the U.S. Northeast. Natural gas remains central to the region’s energy mix, and this gas transmission project expansion is intended to strengthen supply reliability and help mitigate winter price fluctuations for consumers. Enbridge anticipates investing around US$0.3 billion in system upgrades located within or adjacent to existing rights-of-way. Subject to timely regulatory and government approvals, the company expects AGT Enhancement to be completed in 2029.
The Eiger Express Pipeline, on the other hand, will be around 450 miles long with a diameter of 42 inches and will move natural gas from the Permian Basin in West Texas to the Katy area. Eiger, designed to transport 2.5 Bcf/d of natural gas, is expected to be completed in 2028 and will give Enbridge a significant equity stake in up to 10 Bcf/d of long-haul Permian Basin takeaway capacity. The facilities will be connected to key storage facilities and LNG export terminals along the Gulf Coast. The project complements existing Whistler Parent JV assets and is supported by long-term investment-grade counterparties’ contracts.