The Globe and Mail reports in its Wednesday, Sept. 6, edition that Enbridge is buying three U.S. utilities for $9.4-billion (all figures U.S.). The Globe's triple bylined item reports that Enbridge has entered into three agreements with Dominion Energy to acquire East Ohio Gas; Questar Gas and its related Wexpro companies; and Public Service Co. of North Carolina. The deal comprises $9.4-billion in cash, plus $4.6-billion of assumed debt.
Enbridge plans to finance the deal through a combination of debt and equity.
Canadian fossil-fuel producers maintain that natural gas will play a crucial role in the power grid as countries move to reduce greenhouse-gas emissions.
Proponents want to see it displace more carbon-intensive coal for generating electricity in other countries. Critics argue that burning gas is not that much better, as it releases large amounts of methane -- a powerful greenhouse gas -- into the atmosphere.
The Enbridge expansion will split the company's earnings before interest, taxes, depreciation and amortization 50-50 between its U.S. and Canadian operations, by beefing up an American presence that grew rapidly when Enbridge bought Spectra Energy in 2016.
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