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September 8, 2021

Canada’s Enbridge to acquire Moda Midstream for $3bn

Enbridge expects the acquisition, including the crude export terminal, to significantly advance its US Gulf Coast export capacity.

By Archana Rani

Canadian pipeline operator Enbridge has agreed to acquire US-based logistics company Moda Midstream Operating in a deal worth $3bn from EnCap Flatrock Midstream.

Enbridge expects the deal to significantly advance its US Gulf Coast export capacity and connectivity to low-cost reserves in the Permian and Eagle Ford basins.

Moda Midstream Operating operates the Moda Ingleside Energy Center (MIEC), the largest crude export terminal by volume in the US.

Located along the Gulf Coast, the asset connects Permian and Eagle Ford production to international markets.

North America’s premium, very large crude carrier (VLCC) capable crude export terminal has 15.6 million barrels of storage and 1.5 million barrels per day of export capacity.

Enbridge plans to rename the terminal to Enbridge Ingleside Energy Center (EIEC) upon the completion of the deal.

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The firm also plans to develop solar power capacity at the terminal site to support its 2050 net-zero emissions tagert.

Enbridge president and CEO Al Monaco said: “Our strategy is driven by the important role that low cost, sustainable North America energy supply will play in meeting growing global demand.

“With close proximity to world-class Permian reserves, and with cost effective and efficient export infrastructure, our new Enbridge Ingleside terminal will be critical to capitalizing on North America’s energy advantage.”

The terminal also has permits to expand storage capacity to 21 million barrels and export capacity to 1.9 million barrels per day.

Assets to be acquired by Enbridge also include a 20% stake in the 670,000 barrel per day (bpd) Cactus II Pipeline, a 100% interest in the 300,000bpd Viola pipeline, and a 100% stake in the 350,000 bpd Taft Terminal.

The deal will also see Enbridge acquiring a 50% stake in Moda’s St James deepwater crude and refined products terminal development project.

Subject to customary regulatory approvals and closing conditions, the transaction is planned to close in the fourth quarter of this year.

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