Enbridge to enter into jv connecting permian basin natural gas supply to growing lng and usgc demand

Calgary, ab , march 26, 2024 /prnewswire/ - enbridge inc. ("enbridge") (tsx: enb) (nyse: enb) announced today that it has entered into a definitive agreement with whitewater/i squared capital ("whitewater/i squared") and mplx lp ("mplx") to form a joint-venture that will develop, construct, own, and operate natural gas pipeline and storage assets connecting permian basin natural gas supply to growing lng and u.s. gulf coast ("usgc") demand. highlights: acquiring a meaningful, strategic equity interest in the joint venture immediately accretive to dcf per share, with ~90% contracted cash flows receiving immediate, recurring, and growing cash flow from operating assets with minimal commodity exposure optimizes balance sheet by increasing ebitda and reducing enbridge's share of future rio bravo pipeline project capex proportional to its economic interest in that project embedded organic expansion opportunities provides attractive growth options and diversifies offtake the joint venture will be owned by whitewater/i squared (50.6%), mplx (30.4%), and enbridge (19.0%) and will include the following assets: 100% interest in whistler pipeline, a ~450-mile, 42-inch intrastate pipeline transporting natural gas from an interconnect with the waha header in the permian basin to agua dulce, tx, near the starting point of the proposed rio bravo pipeline 100% interest in the rio bravo pipeline project, ~137-miles of new 42-inch and 48-inch pipelines transporting natural gas from the agua dulce supply area to nextdecade's rio grande lng project in brownsville, texas 70% interest in adcc pipeline, a ~40-mile, 42-inch proposed intrastate pipeline designed to transport 1.7 bcf/d of natural gas from the terminus of the whistler pipeline in agua dulce, tx to cheniere's corpus christi lng export facility (the pipeline is expected to be in-service in q3 2024 and is expandable up to 2.5 bcf/d) 50% interest in waha gas storage, a ~2.0 bcf gas storage cavern facility, with additional topside facilities capable of injection and withdrawal approximately 98% of capacity is contracted under long-term, take-or-pay contracts with an average contract length greater than 10 years.
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