Enbridge Makes FID on Algonquin Gas Transmission Enhancement Project

Enbridge Inc. said it has reached a final investment decision on the Algonquin Reliable Affordable Resilient Enhancement project (AGT Enhancement).

Enbridge signed a commercial agreement for AGT Enhancement, which is expected to increase deliveries on the Algonquin Gas Transmission pipeline to existing local distribution company customers in the U.S. Northeast, the company said in a news release.

Once completed, AGT Enhancement will deliver approximately 75 million cubic feet per day (Mmcfpd) of incremental natural gas, under long-term contracts, to “investment-grade counterparties” in the U.S. Northeast, where natural gas is a key component of the energy mix in the region, Enbridge said.

The project is designed to increase reliable supply and improve affordability by reducing winter price volatility for customers, the company stated.

Enbridge said it expects to invest $0.3 billion in system upgrades within, or adjacent to, existing rights-of-way. Subject to the timely receipt of the required government and regulatory approvals, the company expects to complete AGT Enhancement in 2029.

FID on Eiger Express Pipeline

Further, through its Matterhorn joint venture, Enbridge said it also reached a final investment decision on the Eiger Express Pipeline, a pipeline with capacity of up to 2.5 billion cubic feet per day (Bcfpd) from the Permian Basin to the Katy area to serve the growing U.S. Gulf Coast liquefied natural gas (LNG) market, according to the release.

The pipeline is designed to transport up to 2.5 Bcfpd of natural gas through approximately 450 miles of 42-inch pipeline from the Permian Basin in West Texas to the Katy area, the release said.

Upon the expected completion of Eiger in 2028, Enbridge said it expects to own a “meaningful equity interest” in up to 10 Bcfpd of long-haul Permian Basin egress pipeline capacity that is connected to key storage facilities and LNG export hubs along the U.S. Gulf Coast.

The project is complementary to the Whistler Parent JV assets and is backed by long-term contracts with “predominantly investment-grade counterparties,” Enbridge said.

The Matterhorn joint venture is owned by WhiteWater, MPLX LP, ONEOK, Inc., and Enbridge. The Eiger Express Pipeline is a joint venture owned 70 percent by the Matterhorn JV, 15 percent by ONEOK, and 15 percent by MPLX. ONEOK’s and MPLX’s direct ownership interests in the Eiger Express Pipeline joint venture are incremental to their ownership through the Matterhorn JV, resulting in 25.5 percent and 22 percent ownership in the pipeline, respectively.

Supply for Eiger will be sourced from multiple connections in the Permian Basin, including gas processing facilities in the Midland Basin, and from the Delaware Basin via the Agua Blanca Pipeline, a joint venture between WhiteWater, Enbridge and MPLX, according to an earlier statement from WhiteWater.

The pipeline will be constructed and operated by WhiteWater and is expected to be in service in mid-2028, the statement said.

“We continue to deliver on the $23 billion worth 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,” Cynthia Hansen, president for gas transmission at Enbridge, said. “These investments add visibility to, and extend, our growth outlook through the end of the decade”.

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