Calgary-based Enbridge Inc. said Monday it will buy Houston-based Spectra Energy Corp. in a $37-billion cross-border deal that will create the largest energy pipeline and storage company in North America. The deal is expected to close in the first quarter of 2017, pending regulatory approval.
Here is a look at the two companies:
Enbridge Inc.
Headquarters: Calgary
Market capitalization on Sept. 2: $49.7 billion
Employees: Nearly 11,000 across Canada and the U.S.
Founded: April 30, 1949, as Interprovincial Pipe Line Co.
Growth projects: Enbridge lists $24 billion in commercially-secured projects plus $14 billion in potential capital projects.
Business: Enbridge operates the world’s longest crude oil and liquids transportation system across Canada and the U.S. at 27,600 kilometres. It’s also involved in natural gas gathering and midstream operations. It owns and operates Canada’s largest natural gas distribution company in Ontario, Quebec, New Brunswick and New York State, and owns nearly 2,000 megawatts of renewable power generating capacity.
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Spectra Energy Corp.
Headquarters: Houston
Market capitalization on Sept. 2: US$25.3 billion (Cdn$32.5 billion)
Employees: As of Dec. 31, 2015, Spectra had 3,600 workers in Canada and 2,400 in the U.S. Its 50-per-cent-owned DCP Midstream had 3,200 employees in the U.S.
Founded: Spectra was formed in 2007 as a spin-off from Duke Energy, but traces its roots to 1911 and the Niagara Falls, Ont.-based Union Gas Company of Canada.
Growth projects: Spectra has $8 billion of projects currently in execution and aims to add $17 billion in new project growth by 2020.
Business: In the U.S. and Canada, Spectra has 140,800 kilometres of gas pipelines and 2,720 kilometres of liquids pipelines, 300-billion cubic feet of natural gas storage capacity, 4.8-million barrels of crude oil storage, plus natural gas gathering, processing, and local distribution operations. Spectra owns 50 per cent of DCP Midstream, which owns or operates 61 plants, 12 fractionating facilities and about 100,000 kilometres of natural gas pipeline in the United States.
Sources: Company reports, regulatory filings
Note to readers: This is a corrected story. A previous version had incorrect number of kilometres of Spectra pipelines