Enbridge Axing 1,000 (Mostly) Spectra Energy Jobs

Last September MDN reported on a midstream deal with major implications for the Marcellus/Utica: Canadian pipeline operator Enbridge Inc. announced an all-stock deal to buy out pipeline operator Spectra Energy, based in Houston, for $28 billion (see Canadian Enbridge Buying US Spectra Energy for $28B). 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. The merger was completed in February (see Spectra Energy is No More – $28B Merger with Enbridge Complete). Unfortunately, this week Enbridge announced they are axing around 1,000 jobs (6% of the workforce), to “address the overlap” and optimize “synergies” in the newly-combined company. Most of the 1,000 jobs being axed are from the Spectra workforce in the Houston area. We wonder how many top managers were “overlap” and “synergy optimized?” Yeah, likely none…

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