FTC Seeks Public Comments on Enbridge Inc.’s Petition to Set Aside 2017 Order

The Federal Trade Commission is seeking public comment on a petition by Enbridge Inc. requesting that the Commission reopen and set aside a final consent order issued in 2017 regarding Enbridge’s merger with energy infrastructure company Spectra Energy Corp.

The FTC’s 2017 order with Enbridge settled charges alleging that the proposed merger between Enbridge and Spectra would harm competition in the market for pipeline transportation of natural gas in three production areas off the coast of Louisiana. The FTC’s complaint alleged the merger likely would reduce natural gas pipeline competition within the Green Canyon, Walker Ridge, and Keathley Canyon production areas in the Gulf of Mexico because, after the acquisition, Enbridge would have an indirect ownership interest in the Discovery pipeline, the main competitor to Enbridge’s own Walker Ridge pipeline.

Under the final consent order Enbridge was required to establish firewalls to limit its access to non-public information about the Discovery pipeline. Also, with two limited exceptions, board members of the Spectra-affiliated companies that hold a 40 percent share in the Discovery pipeline are required to recuse themselves from any vote involving the pipeline.

In the petition, Enbridge has asked the Commission to reopen and set aside the 2017 order since it no longer holds an indirect ownership interest in the Discovery pipeline. In 2024, Enbridge exited the partnership that gave it an indirect ownership interest in Discovery.  As a result, Enbridge no longer has access to the Discovery pipeline’s competitively sensitive information, nor does it have an ability to influence decisions concerning the Discovery pipeline, according to the petition.  Thus, the petition requests that the Commission should reopen and set aside the order.

The FTC will publish Enbridge’s application in the Federal Register shortly. Instructions for filing comments appear in the published notice. Comments must be received 30 days after publication in the Federal Register. Once processed, they will be posted on Regulations.gov. After the comment period closes, the Commission will vote on whether to approve the application.