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Enbridge to form a natural gas supply venture

Published by , Editorial Assistant
World Pipelines,

Canadian pipeline operator Enbridge said on Tuesday 26 March, 2024, it would form a venture with I Squared Capital and pipeline firms WhiteWater and MPLX to connect Permian supplies to the US Gulf Coast to tap into strong LNG demand for exports, reports Reuters.

Enbridge will have a 19% stake, WhiteWater and I Squared a com-bined 50.6% stake while MPLX will hold 30.4% in the venture. The deal is expected to close in second quarter.

The US 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 US$150 million of the post-closing capital to complete the Rio Bravo project. It will also provide US$350 million in cash to the venture.

The Permian is largest US oil shale patch and Enbridge has dis-closed plans to expand its capacity in the basin.

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