Canadian Enbridge Buying US Spectra Energy for $28B

Combined infrastructure – click for larger map

Another big hairy (midstream) deal with implications for the Marcellus/Utica. Yesterday Canadian pipeline operator Enbridge Inc. announced an all-stock deal to buy out pipeline operator Spectra Energy (based in Houston). Spectra has a number of critical pipeline infrastructure projects under way or planned in the Marcellus/Utica region, including the planned Access Northeast pipeline to New England, the mighty NEXUS pipeline planned to span Ohio, the currently under construction Algonquin Incremental Marketing (AIM) pipeline project, and three projects (Access South, Adair Southwest and Lebanon Express) under way to expand one of the largest natural gas pipelines in the U.S. (and in the northeast)–the Texas Eastern Transmission (Tetco) pipeline. Does a Canadian pipeline company heavily involved in shipping crude via pipelines buying a U.S. company that ships natural gas via pipelines sound familiar? It should. TransCanada bought out Columbia Pipeline Partners two months ago–another case of a Canadian company buying into the bountiful U.S. Marcellus/Utica shale midstream (see TransCanada and Columbia Pipeline Tie the Knot Today). Here’s the low down on Enbridge’s play to buy Spectra Energy, which would form another mega midstream company to rival Kinder Morgan and Williams…

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