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
PHX Insists Shareholders Reject WhiteHawk’s Latest Offer
2024-11-14 - PHX Minerals’ board maintained its stance on Nov. 14 that WhiteHawk’s latest offer was not in the best interest of its stockholders.
Ovintiv Swaps the Uinta for Montney in Multiple M&A Moves
2024-11-15 - Ovintiv is expanding greatly in the Canadian Montney Shale play through a US$2.38 billion deal with Paramount Resources and exiting the newly booming Uinta Basin in Utah with a $2 billion sale to FourPoint Resources.
Oxy CEO Sheds Light on Powder River Basin Sale to Anschutz
2024-11-14 - Occidental is selling non-core assets in the Lower 48 as it works to reduce debt from a $12 billion Permian Basin acquisition.
Coterra Eyes Wolfcamp D, Penn Shale Upside with $3.95B Permian M&A
2024-11-15 - With $3.95 billion in Permian M&A, Coterra is adding new Delaware Basin locations in the Bone Spring, Harkey and Avalon benches—and eyeing upside from deeper zones.
Roth-Backed SPAC To Take Public Permian Gas, Helium Producer
2024-11-13 - A blank-check company backed by Roth Capital Partners and Craig-Hallum Capital Group aims to combine with Permian gas and helium producer New Era Helium.
Comments
Add new comment
This conversation is moderated according to Hart Energy community rules. Please read the rules before joining the discussion. If you’re experiencing any technical problems, please contact our customer care team.