Pipeline Operator Enbridge to Buy US Gulf Coast Gas Storage Facility for $335 Million
(Reuters) — Calgary, Alberta-based pipeline operator Enbridge Inc. said it would buy a gas storage facility in Tres Palacios in the U.S. Gulf of Mexico coast region for $335 million to strengthen its LNG export business.
The deal, expected to close in the second quarter, looks to tap into high demand for North American LNG exports after Western sanctions on major producer Russia following its invasion of Ukraine squeezed a tight global supply.
The Tres Palacios gas storage facility currently has a capacity of about 35 billion cubic feet and serves gas-fired power generation in Texas and Mexico.
Additionally, Enbridge announced that it will invest C$3.3 billion ($2.42 billion) in natural gas and liquids infrastructure and in renewable power this year and expects an annual core earnings growth rate of 4% to 6% through 2025, the Canadian company said on Wednesday.
The investment will also include gas transmission modernization capital totaling C$2.4 billion.
The pipeline operator has also decided to proceed with the construction of the Enbridge Houston Oil Terminal for an initial capital cost of $240 million.
Enbridge also committed $1 billion to Divert Inc, a U.S-based company that converts food waste to energy, the latest in a string of investments by major energy companies in biogas, which can replace traditional natural gas but is more costly to produce.
"We will continue to maintain the flexibility to execute on other accretive, value-enhancing activities such as tuck-in acquisitions and returning additional capital to shareholders," Chief Executive Greg Ebel said in a statement.
The company had earlier said it expects to deploy about C$6 billion of capital in 2023, inclusive of maintenance capital.
($1 = 1.3585 Canadian dollars)
Related News
Related News
- Trump Aims to Revive 1,200-Mile Keystone XL Pipeline Despite Major Challenges
- Valero Considers All Options, Including Sale, for California Refineries Amid Regulatory Pressure
- ConocoPhillips Eyes Sale of $1 Billion Permian Assets Amid Marathon Acquisition
- ONEOK Agrees to Sell Interstate Gas Pipelines to DT Midstream for $1.2 Billion
- Energy Transfer Reaches FID on $2.7 Billion, 2.2 Bcf/d Permian Pipeline
- U.S. LNG Export Growth Faces Uncertainty as Trump’s Tariff Proposal Looms, Analysts Say
- Tullow Oil on Track to Deliver $600 Million Free Cash Flow Over Next 2 Years
- Energy Transfer Reaches FID on $2.7 Billion, 2.2 Bcf/d Permian Pipeline
- GOP Lawmakers Slam New York for Blocking $500 Million Pipeline Project
- Texas Oil Company Challenges $250 Million Insurance Collateral Demand for Pipeline, Offshore Operations
Comments