Enbridge Inc., a North American energy giant, recently completed the acquisition of Questar Gas Company and its Wexpro affiliates from Dominion Energy, Inc. Questar Gas, now part of the distribution and storage unit gas company, will continue to operate under the names Enbridge Gas Utah, Enbridge Gas Wyoming and Enbridge Gas Idaho.
Context and issues of the acquisition
Questar Gas is a multi-state company that distributes natural gas to approximately 1.2 million customers in areas of high economic and population growth. Its asset portfolio includes more than 33,500 km of natural gas distribution and transmission pipelines, as well as a liquefied natural gas storage facility, ensuring system reliability. The cost-based procurement model with Wexpro ensures stability and accessibility of services for customers.
Financial and strategic impacts
This acquisition strengthens Enbridge’s low-risk business model and supports its long-term dividend growth through stable and predictable cash flow. Michele Harradence, Executive Vice President and President of Gas Distribution and Storage at Enbridge, expressed her excitement about integrating Questar Gas and Wexpro employees into the Enbridge family, and developing productive relationships with local stakeholders.
Growth prospects
Enbridge also plans to complete the acquisition of Public Service Company of North Carolina, Incorporated (PSNC) once necessary regulatory approvals are obtained. The combined contribution of Questar, as well as the previous acquisition of The East Ohio Gas Company (now Enbridge Gas Ohio), is expected to represent approximately 80% of the total annualized EBITDA from the three gas companies acquired from Dominion.
A future strategy focused on sustainability
Enbridge is committed to connecting millions of people to energy securely and reliably, while investing in modern energy delivery infrastructure. The company, with more than a century of experience in conventional energy infrastructure and two decades in renewable energy, continues to explore new technologies such as hydrogen, renewable natural gas and capture and storage carbon. With the goal of carbon neutrality by 2050, Enbridge demonstrates its commitment to a sustainable energy future.
With this acquisition, Enbridge not only strengthens its presence in the Western United States but also its ability to provide stable and reliable energy services in a growing region. This targeted growth strategy ensures both increased financial strength and a significant contribution to energy sustainability.
