The Gray Oak Pipeline company began a binding open season on May 9 for a proposed capacity expansion of 120,000 bbl/d of crude.

The open season for the Texas pipeline ends at 5 p.m. on June 28.

Enbridge (ENB) operates the line, which it owns in a joint venture with Phillips 66 (PSX), Marathon Petroleum (MPC)  and Diamondback Energy (FANG). The Gray Oak Pipeline is an 850-mile intrastate system extending from the Permian to destinations in Corpus Christi, Ingleside and Freeport.

Enbridge’s Ingleside Energy Center is the largest crude oil storage facility and export terminal in the U.S.

The 120,000 bbl/d is a reduction from Enbridge’s original plan to expand capacity by 200,000 bbl/d, which was announced to investors in March.

The crude pipelines that serve Corpus Christi are operating at capacity, according to an analysis by RBN Energy’s Sheela Tobben, published on May 8. The port city’s recently enlarged shipping channels make it an attractive loading spot for exports.

Enbridge M&A

In Enbridge’s first-quarter earnings report, the company detailed an active period of growth over the first three months of 2024.

In March, Enbridge finalized its acquisition of the East Ohio Gas Co., which it acquired from Dominion Energy (D) for $6.6 billion. Also in March, the company announced a definitive agreement with Whitewater and MPLX to combine the Rio Bravo and Whistler natural gas pipeline assets into a new JV, dedicated to moving natural gas out of the Permian.

The company also sanctioned the $1.1 billion Tennessee Ridgeline Expansion, a pipeline that will ship natural gas to a gas-fired generator in Kingston, Tenn., to be built by the Tennessee Valley Authority.

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