Enbridge has agreed to form a JV with WhiteWater, I Squared Capital and MPLX to connect natural gas supply from the Permian Basin to the US Gulf Coast.

The JV aims to develop, construct, own and operate natural gas pipeline and storage assets to meet increasing demand in the LNG and US Gulf Coast markets.

Enbridge will own a 19% stake in the venture while WhiteWater and I Squared will hold a combined 50.6% stake. MPLX will hold 30.4% in the JV.

As per the agreement terms, Enbridge will contribute its 100%-owned Rio Bravo pipeline project and around $350m in cash for the JV stake.

The company will retain an economic interest of 25% in the pipeline project as part of its investment.

The 220km long Rio Bravo pipeline is being built to bring natural gas from the Agua Dulce supply area to the Rio Grande LNG project in Brownsville, Texas, which is owned by NextDecade.

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The JV assets will also include the Whistler natural gas pipeline, which supplies gas from an interconnect with the Waha Header in the Permian Basin to Agua Dulce, Texas, near the starting point of the proposed Rio Bravo pipeline.

Furthermore, the venture will have a 70% stake in the proposed 64km-long ADCC natural gas pipeline as well as a 50% interest in the Waha Gas Storage project in Pecos County, Texas.

Enbridge EVP and gas transmission and midstream president Cynthia Hansen said: “Acquiring a meaningful equity interest in an integrated Permian natural gas pipeline and storage network that is directly connected to our existing infrastructure at Agua Dulce through this JV with WhiteWater/I Squared and MPLX is very exciting.

“This is a great way to enhance our super-system approach, bringing energy supply to places where it is needed most and providing last mile connectivity to domestic and export customers.”

Contingent on the necessary regulatory approvals and other conditions, the deal is expected to close in the second quarter.

Earlier this month, Enbridge completed the acquisition of the East Ohio Gas Company from Dominion Energy.