Enbridge to build pipelines to service new LNG facility in U.S.

Energy transportation giant Enbridge Inc. will be going ahead with two pipeline projects to service a new liquefied natural gas facility in the U.S., part of the Canadian company’s push to grow its LNG business as global demand soars.

The Calgary-based pipeline company announced Thursday it will transport 1.5 billion cubic feet per day of natural gas from basins in the U.S. to Venture Global’s recently sanctioned Plaquemines LNG plant in Plaquemines Parish, Louisiana.

U.S.-based LNG company Venture Global announced on Wednesday that it will go ahead with the first phase of construction of the Plaquemines LNG facility, after securing US$13.2 billionin financing.

According to Venture Global – whose first LNG facility, also in Louisiana, began exporting earlier this year – that figure represents the largest project financing transaction that has closed so far this year.

Enbridge said its two pipelines that will supply the facility are the 43-km Gator Express Meter Project, expected to be in service in 2023, and the 4.8-km Venice Extension Project, expected to be in service in 2024. The estimated cost for the two projects is US$400 million, underpinned by long-term contracts, the company said.

The announcement comes as U.S. benchmark natural gas prices topped US$9 per mmBTU this week amid concerns about global energy security and the war in Ukraine.