Enbridge closes on deal to buy Questar Gas

Published on June 04, 2024 by Dave Kovaleski

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Enbridge closed on its deal to buy Questar Gas and its related Wexpro companies from Dominion Energy.

Questar Gas is a multi-state utility that distributes natural gas in Utah, southwestern Wyoming, and southeastern Idaho, serving approximately 1.2 million customers. Also, Questar has a cost-of-service supply agreement with Wexpro, which helps ensure reliability and affordability for Questar’s customers.

The deal is valued at approximately $4.3 billion, including assumed indebtedness.

With more than 21,000 system miles, Questar serves 1.2 million customer accounts in Utah, Wyoming, and Idaho, and Wexpro Company supplies natural gas under a cost-of-service agreement to Questar Gas.

Now, the Questar Gas utility will be doing business in Utah as Enbridge Gas Utah, in Wyoming as Enbridge Gas Wyoming, and in Idaho as Enbridge Gas Idaho. Further, Questar will join Enbridge’s Gas Distribution and Storage Business Unit.

“We are excited to welcome another strong gas utility to Enbridge. Questar Gas and Wexpro enhance the scale and breadth of our existing low risk utility business model and support our long-term dividend growth profile by providing stable, predictable cash flows,” Michele Harradence, Enbridge executive vice president and president, gas distribution and storage, said. “We welcome Questar Gas and Wexpro employees into the Enbridge family of companies and look forward to building long‑term productive relationships with all of their stakeholders in Utah, Wyoming, and Idaho.”

Questar’s asset portfolio includes over 21,000 miles of natural gas distribution and transmission pipelines, a liquefied natural gas storage facility, and interconnections to multiple interstate natural gas pipelines.

Additionally, the closing of the purchase of the Public Service Company of North Carolina is expected to occur following the receipt of required regulatory approvals for that purchase.

The acquisition of PSNC is on track to close in 2024. The combined contributions from Questar and the previously closed acquisition of The East Ohio Gas Company – now Enbridge Gas Ohio — are expected to contribute approximately 80 percnt of the total annualized EBITDA from the three gas utilities Enbridge has agreed to acquire from Dominion.