Enbridge announced on Tuesday that it has reached a final investment decision to move forward with its Algonquin Gas Transmission pipeline expansion, aiming to tap into the growing natural gas demand across the United States. While oil production is beginning to level off, U.S. gas output is projected to climb as the country leans more on natural gas for electricity generation and boosts its liquefied natural gas exports.
Pipeline operators like Kinder Morgan, Williams, and Energy Transfer are already spending billions to build new infrastructure across the Northeast to meet the surge. Once completed, Enbridge’s upgraded system will supply an additional 75 million cubic feet of natural gas per day under long-term contracts in the U.S. Northeast, where the fuel remains a critical part of the energy mix.
The company expects to invest about $300 million in system upgrades, with full completion targeted for 2029. Reaching a final investment decision generally indicates that a project has secured enough supply agreements to guarantee financing. Just last month, Enbridge’s Matterhorn joint venture also reached the go-ahead for its Eiger Express Pipeline, reinforcing the company’s expanding role in U.S. gas infrastructure.