Enbridge Inc. has taken significant steps to expand its operations in the Permian Basin. A key initiative is the launch of an open season to increase the Gray Oak pipeline capacity by up to 120,000 barrels per day, contingent on the success of this period.
Additionally, Enbridge has formed the Enbridge WhiteWater MPLX joint venture, which owns a network of gas pipelines and storage facilities connecting the Permian Basin to the U.S. Gulf Coast. This includes the operational Whistler Pipeline and Waha Natural Gas Storage, the ADCC pipeline expected to commence service in Q3 2024, and the Rio Bravo pipeline slated for 2026. The JV assets are largely backed by investment-grade counterparties, aligning with Enbridge’s low-risk commercial model. The venture provides strategic access to Gulf Coast LNG terminals, such as Cheniere’s Corpus Christi terminal, and positions Enbridge to capitalize on growing LNG export volumes, thereby significantly enhancing its natural gas footprint and supporting future growth in the region.
Greg Ebel (President and CEO):
- Expansion Projects: Enbridge launched an open season to expand the Gray Oak pipeline capacity by up to 120,000 barrels per day, pending a successful open season.
- Joint Venture Formation: The formation of the Enbridge WhiteWater MPLX joint venture was announced, which will own a gas pipeline and storage network connecting the Permian Basin to the growing U.S. Gulf Coast demand.
- Strategic Importance: This new joint venture extends Enbridge’s access to U.S. Gulf Coast LNG terminals, including a connection to Cheniere’s Corpus Christi terminal.
- Asset Details: The JV includes four assets:
- The Whistler Pipeline and the Waha Natural Gas Storage, which are currently in operation.
- The ADCC pipeline, expected to come into service in Q3.
- The Rio Bravo pipeline, scheduled to enter service in 2026.
- Commercial Model: The portfolio of assets is highly contracted and backed by predominantly investment-grade counterparties, aligning with Enbridge’s low-risk commercial model.
- Growth Opportunities: The system has embedded future growth opportunities to support growing LNG export volumes.
These highlights underscore Enbridge’s strategic initiatives and investments in the Permian Basin to enhance their infrastructure and capitalize on the growing demand for natural gas and LNG exports.
