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Enbridge Inc. has closed a $6.6 billion acquisition of an Ohio natural gas utility from Dominion Energy, part of previously announced M&A between the two companies totaling $14 billion.
Enbridge said in a March 7 press release it completed the acquisition of The East Ohio Gas Co., which will now do business as Enbridge Gas Ohio (EOG) and will join Enbridge's Gas Distribution and Storage Business Unit. The deal includes the assumption of debt, Dominion said in a separate press release.
EOG is expected to contribute more than 40% of the total annualized EBITDA from the three gas utilities Enbridge has agreed to acquire from Dominion.
Still pending are Enbridge’s purchases from Dominion of Questar Gas Co. and its related Wexpro companies and the Public Service Company of North Carolin (PSNC). Enbridge said it expects the deals, announced in September, to close in 2024, following the receipt of required regulatory approvals for each gas utility.
EOG is a single-state utility that serves more than 1.2 million customers across Ohio. The gas utility has a robust portfolio of assets, including more than 22,000 miles (35,400 km) of transmission, gathering and distribution pipelines, underground storage, and interconnections to multiple interstate pipelines and large natural gas producers.
"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," said Michele Harradence, Enbridge executive vice president and president, gas distribution and storage. "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. With this acquisition, Enbridge has all four of its business units represented in Ohio, providing further value-add opportunities.”
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