Enbridge Announces Two Gas Transmission Projects, Pipeline Expansions

Enbridge has reached a final investment decision on two gas transmission projects. The company signed commercial agreements for the Algonquin Reliable Affordable Resilient Enhancement project (AGT Enhancement) which is expected to increase deliveries on Algonquin Gas Transmission pipeline to existing Local Distribution Company (LDC) customers in the US Northeast. In addition, through its Matterhorn joint venture, the company reached a final investment decision on the Eiger Express Pipeline (Eiger), an up to 2.5 bcf/d pipeline from the Permian Basin to the Katy area to serve the growing US Gulf Coast liquefied natural gas (LNG) market.

“We continue to deliver on the US$23 billion 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 US Northeast, and LNG exports from the US Gulf Coast,” said Cynthia Hansen, executive vice president and president of Gas Transmission at Enbridge. “These investments add visibility to, and extend, our growth outlook through the end of the decade.”

Once completed, AGT Enhancement will deliver approximately 75 Mmcf/d of incremental natural gas, under long-term contracts, to investment grade counterparties in the US Northeast. Natural gas is a key component of the energy mix in the region. This project is designed to increase reliable supply and improve affordability by reducing winter price volatility for customers. Enbridge expects to invest US$300 million in system upgrades within, or adjacent to, existing rights-of-way. Subject to the timely receipt of the required government and regulatory approvals, Enbridge fully expects to complete AGT Enhancement in 2029.

Eiger is designed to transport up to 2.5 bcf/d of natural gas through approximately 450 miles (724 km) of 42-inch (107-cm) pipeline from the Permian Basin in West Texas to the Katy area. Upon anticipated completion of Eiger in 2028, Enbridge expects to own a meaningful equity interest in up to 10 bcf/d of long-haul Permian Basin egress pipeline capacity that is connected to key storage facilities and LNG export hubs along the US Gulf Coast. This project is complementary to the Whistler Parent joint venture (JV) assets and is backed by long-term contracts with predominantly investment grade counterparties.

The transmission projects follow several updates that were discussed in Enbridge’s second-quarter 2025 earnings call in August. “We’ve got a number of exciting announcements this quarter spread out across our footprint,” said Gregory Ebel, Enbridge chief executive officer and president, on the company’s second-quarter 2025 earnings call. “In Mississippi, we sanctioned the Line 31 expansion of Texas Eastern to serve rising industrial and power demand, all secured under 20-year take or pay agreements with a well-known investment grade customer. This project was among the opportunities highlighted at Investor Day to serve growing gas demand. On the Gulf Coast, we’ve progressed optimization projects, including a US$50 million expansion of SESH to serve the growing power generation needs of a major electric utility that’s there serving data centers, as well as an upgrade to the Tres Palacios storage facility in Texas. The storage upgrade is being done to increase injection and withdrawal rates and is part of a larger expansion opportunity we expect to realize later in the decade. In Canadian Gas Transmission, I’m pleased to announce a 40 bcf expansion of the Aitken Creek storage facility that will support the growing Canadian LNG market. That project will also optimize our other expansions underway on the Westcoast System, providing customers with critical flexibility in a rapidly developing region, particularly on the LNG front. Lastly, we are updating our capital investment for Woodfibre. As a reminder, Enbridge has a contract structure that provides us the ability to earn a low double-digit return, and we will now set that rate closer to the in-service date. We remained excited about the growing LNG market in Western Canada as all of these projects are expected to enter service in the 2027 to 2029 time period, extending and adding visibility to our long-term growth outlook.”

Enbridge is significantly increasing its capital expenditures (capex) in lockstep with growing free cash flow and earnings (see “Universal Plant Services Presents: “2025 Capex Comparison,” September 2025 Gas Compression Magazine, p. 18). The company is focusing on pipeline optimization, gas infrastructure expansion, and strategic equity stakes in high-demand corridors rather than just new builds.

In its Q1 2025 earnings release, Enbridge announced a slew of capital commitments, including up to US$1.45 billion toward Mainline Optimization Phase 1. The project will add approximately 150,000 bpd of capacity to the Mainline system, primarily through an expansion of the Flanagan South pipeline. The goal is to transport more Canadian crude oil to the US Gulf Coast and help ensure price stability for existing production. Enbridge also announced US$300 million for investment in the Matterhorn Express Pipeline, which connects the Permian Basin to the Gulf Coast, US$290 million for its Birch Grove Expansion, and US$100 million for its T15 expansion in North Caorline to double the capacity of gas-fired generation support.

Enbridge is also working with WhiteWater and Targa Resources Corp. on the Traverse Pipeline, a bi-directional pipeline designed to transport up to 1.75 bcf/d of natural gas through approximately 160 miles (257 km) of 36-inch (91-cm) pipeline along the Gulf Coast between Agua Dulce in South Texas and the Katy area. Supply for the Traverse Pipeline will be sourced from multiple connections, including, but not limited to, the Whistler, Blackcomb, and Matterhorn Express Pipelines. The JV reached a final investment decision in April.