Pembina Pipeline said it would buy Enbridge’s interests in the Alliance Pipeline, Aux Sable and NRGreen joint ventures for C$3.1 billion ($2.30 billion).
Alliance delivers liquids rich natural gas sourced in Northeast B.C., Northwest Alberta and the Bakken region to Chicago.
Aux Sable operates natural gas liquids (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.
Pembina would assume C$327 million of debt as part of the deal, helping Enbridge offload some leverage.
Investors fretted over Enbridge’s debt load from the $14 billion bid for three of Dominion Energy’s natural gas distribution companies in September.
“The sales proceeds will fund a portion of the strategic U.S. gas utilities acquisitions and be used for debt reduction,” Enbridge said in a separate statement.
Pembina added the deals are expected to be completed in the first half of 2024.
Pembina currently owns 50% of the equity interests in Alliance, Aux Sable’s Canadian operations and NRGreen.
It also owns about 42.7% of the equity interests in Aux Sable’s U.S. operations.
