Enbridge sells pipeline interests

$3.1 billion deal with Pembina Pipeline

Enbridge has entered into a definitive agreement to sell its 50% interest in Alliance Pipeline and its 42.7% interest in Aux Sable to Pembina Pipeline Corp. for US$3.1 billion.

Alliance delivers liquids rich natural gas sourced in Northeast B.C., Northwest Alberta, and the Bakken region to Chicago. Aux Sable operates NGL extraction and fractionation facilities in both Canada and the U.S., with extraction rights on Alliance, offering connectivity to key U.S. NGL hubs.

As part of the transaction, Pembina, a long-standing partner on Alliance and the current operator of Aux Sable, will also assume operatorship of Alliance. Enbridge said it will work closely with Pembina to ensure a safe and orderly transition.

nbridge has entered into a definitive agreement to sell its 50% interest in Alliance Pipeline and its 42.7% interest in Aux Sable to Pembina Pipeline Corp. for US$3.1 billion. (Image: Enbridge)

“The Alliance and Aux Sable system has been a reliable and profitable asset for Enbridge for many years. We would like to thank our high-quality team for their commitment to safety and reliability,” said Cynthia Hansen, EVP and president, Gas Transmission and Midstream.

The divestiture represents an important element of Enbridge’s financing plan. The sales proceeds will fund a portion of the strategic U.S. gas utilities and be used for debt reduction. Any remaining acquisitions funding will be satisfied through utilizing any, or all, of the following financing programs available to Enbridge including our ongoing capital recycling program, issuance of further hybrid securities and bonds, reinstatement of our DRIP Program, or at-the-market equity issuances.

The effective date of the transaction is Jan. 1, 2024, with closing expected to occur in the first half of 2024, subject to the receipt of regulatory approvals and customary closing conditions. Enbridge’s 2024 financial guidance and near-term growth outlook through 2025 remain unchanged as a result of this announcement.

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