Enbridge to Merge Ontario Gas Utilities

Calgary-based Enbridge said October 15 it will move forward with the amalgamation of its two Ontario natural gas distribution utilities, Enbridge Gas Distribution and Union Gas, with an expected effective date of January 1, 2019.

The decision follows a detailed review of the parameters of the regulatory approval of the proposed business combination received from the Ontario Energy Board in August 2018, and receipt of approvals from the Enbridge, Enbridge Gas Distribution and Union Gas boards.

In 1996, Enbridge’s predecessor company, IPL Energy, acquired its first natural gas distribution asset, Consumers’ Gas, and soon after changed its name to Enbridge Gas Distribution. It acquired Union Gas in 2017 when it bought Spectra Energy from Duke Energy.

Together, Enbridge Gas Distribution and Union Gas distribute natural gas to more than 3.5mn residential, commercial and industrial customers.

“Union Gas and Enbridge Gas Distribution have long been leaders in delivering exceptional energy value for consumers through an unrelenting focus on safety, operational efficiency and reliability of service,” Cynthia Hansen, Enbridge’s executive vice president, utilities and power operations, said in a statement. “Combining these utilities and leveraging their strengths is an opportunity to do what’s best for customers and to position the combined company for future growth and success.”