• 3 minutes e-car sales collapse
  • 7 minutes Energy Armageddon
  • 11 minutes Russia Says Europe Will Struggle To Replace Its Oil Products
  • 4 hours GREEN NEW DEAL = BLIZZARD OF LIES
  • 1 min America Is Exceptional in Its Political Divide
  • 13 hours Cummins showcases 15L fuel-agnostic engine platform; hydrogen, diesel, biogas 16 March 2023
  • 7 days Gazprom and Rosneft super result
  • 2 days *****5 STARS - "The Markets are Rigged" by The Corbett Report
Are Big Oil's Best Days Behind It?

Are Big Oil's Best Days Behind It?

Big oil isn’t rushing to…

Oil Rallies On Large Crude Draw

Oil Rallies On Large Crude Draw

Oil prices jumped on Wednesday…

Tsvetana Paraskova

Tsvetana Paraskova

Tsvetana is a writer for Oilprice.com with over a decade of experience writing for news outlets such as iNVEZZ and SeeNews. 

More Info

Premium Content

Canadian Pipeline Giant Enbridge Looks To Export 'Cheap' American Oil

Canadian pipeline giant Enbridge is buying a U.S. midstream operator for US$3 billion, betting on advancing its strategy to export from the U.S. Gulf Coast low-cost crude from the Permian and Eagle Ford basins.

Enbridge has entered into a definitive purchase agreement with EnCap Flatrock Midstream to buy Moda Midstream Operating for US$3.0 billion in cash, subject to closing adjustments, the Canadian firm said on Tuesday.

The transaction is expected to close in the fourth quarter of this year, subject to customary regulatory approvals and closing conditions. Upon closing, the deal will be immediately accretive to Enbridge's financial outlook, the company said.

As part of the agreement, Enbridge will buy a 100-percent operating interest in the Ingleside Energy Center near Corpus Christi, Texas—North America's largest crude export terminal. The center will be renamed the Enbridge Ingleside Energy Center (EIEC).

Last year, the Corpus Christi terminal loaded 25 percent of all U.S. Gulf Coast crude exports, says Enbridge.

"EIEC's highly advantaged outer harbor location, with direct connection to low-cost, long-lived supply, combined with VLCC capability and rapid loading rates, position it as one of the most competitive export facilities globally," the company noted.

Enbridge will also buy 20 percent in the 670,000-bpd Cactus II Pipeline, 100 percent in the 300,000-bpd Viola pipeline, and 100 percent in the 350,000-barrel Taft Terminal. 

"We're very excited about acquiring North America's premium, very large crude carrier (VLCC) capable, crude export terminal," Enbridge's president and CEO Al Monaco said.

"Our strategy is driven by the important role that low cost, sustainable North America energy supply will play in meeting growing global demand. With close proximity to world-class Permian reserves, and with cost effective and efficient export infrastructure, our new Enbridge Ingleside terminal will be critical to capitalizing on North America's energy advantage," he added.

Enbridge could also help boost Canada's oil sands pipeline takeaway capacity as soon as this month, if the Line 3 replacement program enters into service.

ADVERTISEMENT

By Tsvetana Paraskova for Oilprice.com

More Top Reads From Oilprice.com:


Download The Free Oilprice App Today

Back to homepage





Leave a comment

Leave a comment




EXXON Mobil -0.35
Open57.81 Trading Vol.6.96M Previous Vol.241.7B
BUY 57.15
Sell 57.00
Oilprice - The No. 1 Source for Oil & Energy News