Canadian-based company Pembina Pipeline closed the completion of a CA$3.1 billion  (US$2.9 billion) deal to buy Enbridge pipeline and NGL interests, the company said on April 1.

Pembina acquired Enbridge’s 50% stake in the Alliance Pipeline and 43% interest in Aux Sable, which operate NGL fractionation facilities in Canada and the U.S. The Alliance line transports liquids-rich natural gas from the Alberta province to the Aux Sable facility.

The deal, initially announced in December 2023, enhances Pembina’s NGL production and receives access to a larger market to sell the product. The acquisition enhances Pembina’s NGL capacity while realizing access to a larger market to sell the product.

During the fourth-quarter, NGLs helped midstream companies stay resilient even as natural gas prices remained in the cellar.

"Aligning with Pembina’s strategy, this acquisition grows and strengthens our existing franchise and provides greater exposure to resilient end-use markets," said Scott Burrows, Pembina president and CEO in a press release.

Pembina paid for the deal partially through the proceeds of a CA$1.28 billion offering of subscription receipts.

Following the closer, Pembina raised it’s 2024 EBITDA guidance range to CA$4.05 billion to CA$4.30 billion, up from the original estimate of CA$3.725 billion to CA$4.025 billion.

According to an Enbridge statement following the closure, the deal is a key element of the company's current financing plan. The proceeds will fund a portion of Enbridge's U.S. gas utilities acquisitions and pay for debt reduction.

Enbridge moved into the gas utility business in September of 2023 with the announcement of three agreements with Dominion Energy for natural gas distribution companies Public Service of North Carolina, EOG, and Questar Gas for a total of US$14 billion.

The acquisition of each utility within the agreements will happen separately. Most recently, Enbridge said March 7 that had closed the acquisition of the East Ohio Gas Co. in early March, which was under the Dominion Energy umbrella.