Enbridge Inc has agreed to acquire Texas-based liquids terminaling and logistics company Moda Midstream Operating LLC for $3 billion from venture capital firm EnCap Flatrock Midstream.
As part of the transaction, the Calgary-based pipeline company said it will acquire a full operating interest in the Ingleside Energy Center export terminal, which it said was responsible for loading 25 percent of all US Gulf Coast crude exports in 2020.
Enbridge said it will receive a 100 percent operating interest in the Viola pipeline, Taft Terminal, and a 20 percent interest in the Cactus II Pipeline.
“This blue-chip platform aligns very well with our long-standing shareholder value proposition; strong commercial underpinnings that generate highly transparent and low risk cash flows, establishing a new platform for low capital intensity growth, and an attractive financial return, all while retaining a strong balance sheet and financing flexibility,” president and chief executive officer Al Monaco said.
The transaction is expected to close in the fourth quarter of this year.
For more information visit www.enbridge.com