Enbridge Inc logo is seen displayed in this illustration taken April 10, 2023.
The expansion will enable the pipeline to deliver an additional 75 million cubic feet per day of natural gas under long-term contracts. Enbridge plans to invest $300 million in system upgrades, with the project expected to be fully operational by 2029. This initiative reflects the growing need for natural gas to support increased electricity consumption and expanding liquefied natural gas exports in the U.S.
Other major U.S. pipeline companies, such as Kinder Morgan (KMI.N), Williams (WMB.N), and Energy Transfer (ET.N), are also investing billions to construct new pipelines across the country to address similar demand. The decision to move forward with the AGT expansion follows Enbridge’s recent final investment decision in August for the Eiger Express Pipeline through its Matterhorn joint venture. Such decisions are typically made after securing sufficient supply agreements to support project financing.
The expansion aligns with industry trends, as natural gas production in the U.S. is projected to grow, even as oil production stabilizes, to meet both domestic and international energy needs.
