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Enbridge will proceed with the Algonquin Gas Transmission Pipeline Expansion Project

Enbridge announced on Tuesday that it had reached a final decision on whether to proceed with the Algonquin Gas Transmission (AGT) Pipeline Expansion to take advantage of the increasing natural gas demand in America.

Gas production is expected to rise in the U.S. despite a plateau in oil production. This will be to meet an increase in electricity demand and a boom in exports of liquefied gas.

To meet the growing demand, U.S. Pipeline firms such as Kinder Morgan, Williams and Energy Transfer are investing billions of dollars to build hundreds and miles of new pipelines. This includes the Northeast.

The expanded pipeline, once completed, will supply an additional 75 million cubic feet of natural gas per day under long-term contracts to the U.S. Northeast. Natural gas is an important component of the region's energy mix.

Enbridge plans to invest $300 Million in system upgrades, and complete the AGT enhancement by 2029.

Typically, companies will only sign a FID for a project after they have secured sufficient supply agreements to get the financing needed for construction.

Enbridge's Matterhorn joint venture reached FID last month for the construction of Eiger Express Pipeline. (Reporting from Sumit Saha, Bengaluru. Editing by Leroy Leo).

(source: Reuters)