![Enbridge Announces $500MM Investment in Gulf Coast Facilities](/sites/default/files/styles/hart_news_article_image_640/public/image/2024/03/enbridge-announces-500mm-investment-gulf-coast-facilities.jpg?itok=Iw-4Irha)
Enbridge, which operates the largest pipeline system in North America, plans to leverage its position to see continued growth in power generated by natural gas. (Source: Shutterstock)
Enbridge has budgeted $500 million in 2024 to expand its infrastructure and presence on the U.S. Gulf Coast, Greg Ebel, president and CEO, announced prior to the company’s investor conference on March 6.
“Today we are announcing accretive new capital investments focused on our U.S. Gulf Coast strategy,” Ebel said. “These accretive investments provide near-term growth in the U.S. Gulf Coast and set the stage for the future expansion through high quality partnerships and embedded organic opportunities.”
At its Ingleside center in Texas, the company plans to acquire export docks and crude storage tanks worth about $200 million. The company has signed an agreement for two marine docks and land adjacent to its facility, along with 2.5 MMbbl of additional crude storage. The expansion will bring the plant’s total storage capacity to 20 MMbbl.
The company plans to use the expansion to enlarge its waterfront and streamline docking and loading operations.
Another $100 million will go towards a 125,000 bbl/d expansion of the Gray Oak Pipeline, which transports oil from the Permian Basin to Ingleside. Gray Oak is a joint venture between Enbridge, Marathon Petroleum and Phillips 66.
The company also set aside $200 million for two lines, one each for gas and oil, for the Sparta project, an offshore development by Shell and Equinor. Enbridge and Shell Pipeline will develop the pipeline project.
Enbridge upgraded its EBITDA growth forecast to 5% for the year. Executives said the boost is expected thanks to its $19 billion acquisition of multiple gas utility companies from Dominion Energy last year. The acquisitions, which are divided into three separate deals, are expected to be completed this year.
Enbridge, which operates the largest pipeline system in North America, plans to leverage its position to see continued growth in power generated by natural gas. The company currently delivers 20% of the natural gas consumed in the U.S. and sees the use of natural gas in utilities as a good economic and environmental move, according to company leadership.
“It’s hard to see a future, at least one that’s good for humans, where natural gas doesn’t play a primary role in energy,” Ebel said.
The finished deals will create North America’s largest natural gas utility, delivering about 9.6 Bcf/d to 20 million people. The company plans to invest about $3 billion annually in infrastructure for its natural gas utilities.
Recommended Reading
Sea Power: Noble’s Deal Fires Major Volley in Offshore, Services M&A
2024-06-14 - Noble Corp.’s $1.6 billion acquisition of Diamond Offshore Drilling may seem like small potatoes compared to the upstream sectors’ massive megadeals, but service sector consolidation could snowball, analysts said.
Vår Selling Norne Assets to DNO
2024-05-08 - In exchange for Vår’s producing assets in the Norwegian Sea, DNO is paying $51 million and transferring to Vår its 22.6% interest in the Ringhorne East unit in the North Sea.
SLB OneSubsea JV to Kickstart North Sea Development
2024-05-07 - SLB OneSubsea, a joint venture including SLB and Subsea7, have been awarded a contract by OKEA that will develop the Bestla Project offshore Norway.
Exclusive: XCL Increases Production Amidst Lookout for More Inventory
2024-06-07 - XCL Resources is beginning its journey to acquire Altamont Energy, but in the meantime, the company is refining its operations in the Uinta Basin to find the perfect lateral length.
Equinor Says EQT Asset Swap Upgrades International Portfolio
2024-04-30 - Equinor CFO Torgrim Reitan says the company’s recent U.S. asset swap with EQT Corp. was an example of the European company “high-grading” its international E&P portfolio.