CenterPoint Energy announced plans to sell its Ohio natural gas distribution business to Canada’s Enbridge Inc. for $2.62 billion, marking another major reshuffling in the U.S. utility landscape. The move is part of a broader effort by CenterPoint to simplify its portfolio and concentrate on core electric and natural gas operations across Indiana, Minnesota, and Texas.
The deal—expected to close in 2026, pending regulatory approval—includes the transfer of roughly 420,000 customer accounts and related infrastructure. It follows a pattern seen across the industry, as utilities reposition to meet rising electricity demand while shedding assets tied to regional gas distribution.
Utilities are increasingly navigating a dual challenge: meeting surging electric load growth driven by AI, data centers, and electrification, while managing the future of natural gas amid decarbonization goals. According to Deloitte’s 2025 Power & Utilities Outlook, U.S. power demand could climb 15–17% annually through the decade as data centers and electric vehicles accelerate consumption .
For CenterPoint, this divestiture is a way to free up capital for grid modernization and electric system upgrades. In a statement, CEO David Lesar said the company aims to “enhance focus and flexibility” as it transitions toward a cleaner, more resilient energy portfolio.
The sale reflects a larger realignment across the utility sector. Over the past two years, companies such as Dominion Energy, NiSource, and National Grid have pursued similar sales or spin-offs of gas distribution networks. Many are using the proceeds to invest in renewables, nuclear extensions, and transmission projects that align with long-term decarbonization and electrification trends.
The buyer, Enbridge, continues to double down on gas infrastructure even as peers pivot toward electricity. The company has made several acquisitions in the U.S. Midwest over the past year, viewing gas pipelines and distribution networks as essential to energy reliability and affordability in the near term.
The $2.6 billion transaction underscores the evolving balance of power between electricity and natural gas in the U.S. energy mix. As utilities like CenterPoint reallocate resources toward electric grid growth, others like Enbridge are betting that natural gas will remain critical for decades—particularly in managing peak demand and fueling industrial customers.
The sale also highlights a growing divide in the sector’s investment strategies: some leaning into electrification and grid tech, others reinforcing the existing gas backbone. For consumers, these decisions shape everything from rate structures to the pace of the clean energy transition.
CenterPoint’s divestiture is a signal of where utilities see their future. As capital flows toward electricity and grid innovation, the gas era is being redefined.
