Enbridge to Form Natural Gas Supply Venture Connecting Permian and Gulf Coast
(Reuters) — Canadian pipeline operator Enbridge said on Tuesday it would form a venture with I Squared Capital and pipeline firms WhiteWater and MPLX to connect Permian supplies to the U.S. Gulf Coast to tap into strong LNG demand for exports.
Enbridge will have a 19% stake, WhiteWater and I Squared a combined 50.6% stake while MPLX will hold 30.4% in the venture. The deal is expected to close in second quarter.
U.S. was the largest exporter of LNG in 2023 with several new export facilities expected to come online by the end of the decade.
The JV would include 100% interests in Enbridge's wholly-owned Rio Bravo Pipeline, which connects to NextDecade's Rio Grande LNG project in Brownsville, Texas, and the Whistler pipeline, which transports natural gas from the Permian to nearly the starting point of the Rio Bravo pipeline.
It will also have a 70% interest in the proposed ADCC pipeline that would connect to Cheniere Energy's Corpus Christi LNG export facility and a 50% interest in the Waha Gas storage.
Enbridge will fund the first $150 million of the post-closing capital to complete the Rio Bravo project. It will also provide $350 million in cash to the venture.
The Permian is largest U.S. oil shale patch and Enbridge has disclosed plans to expand its capacity in the basin.
Related News
Related News
- Trump Aims to Revive 1,200-Mile Keystone XL Pipeline Despite Major Challenges
- Phillips 66 to Shut LA Oil Refinery, Ending Major Gasoline Output Amid Supply Concerns
- Valero Considers All Options, Including Sale, for California Refineries Amid Regulatory Pressure
- ConocoPhillips Eyes Sale of $1 Billion Permian Assets Amid Marathon Acquisition
- ONEOK Agrees to Sell Interstate Gas Pipelines to DT Midstream for $1.2 Billion
- U.S. LNG Export Growth Faces Uncertainty as Trump’s Tariff Proposal Looms, Analysts Say
- Tullow Oil on Track to Deliver $600 Million Free Cash Flow Over Next 2 Years
- Energy Transfer Reaches FID on $2.7 Billion, 2.2 Bcf/d Permian Pipeline
- GOP Lawmakers Slam New York for Blocking $500 Million Pipeline Project
- Polish Pipeline Operator Offers Firm Capacity to Transport Gas to Ukraine in 2025
Comments