Enbridge Plans 120,000 bpd Expansion for Gray Oak Texas Oil Pipeline by 2025

(Reuters) — Energy pipeline company Enbridge plans to expand capacity on its Gray Oak oil pipeline by 80,000 barrels per day (bpd) this year and could add another 40,000 bpd in 2025, an executive told Reuters on Tuesday.

The company had originally planned to add 200,000 bpd to the Texas pipeline, but in February revised downward that target to between 100,000 bpd and 200,000 bpd.

RELATED: Enbridge to Invest $500 Million in Pipeline Assets, Including Expansion of 850-Mile Gray Oak Pipeline

The Gray Oak pipeline runs between the Permian basin in West Texas and Corpus Christi, Texas, on the Gulf Coast. Enbridge's Ingleside Energy Center there is the largest crude oil storage and export terminal by volume in the U.S.

Enbridge said it is not concerned about potential competition at the Corpus Christi hub, where Enterprise Products Partners is trying to secure licensing for its Sea Port Oil Terminal (SPOT) export project.

“It's certainly a competitor for Corpus. But given the advantages of our terminal at Corpus, we are confident Ingleside can compete well against SPOT,” said Colin Gruending, an executive vice president at Calgary-based Enbridge.

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