May 9, 2022 [Houston Business Journal] – Enbridge Inc. (NYSE: ENB), which has a major presence in Houston, bought a massive crude export terminal in a $3 billion deal last year. Now, the company is teaming up for a $2.5 billion-$3 billion project at the site along the Texas Gulf Coast.
The companies announced May 6 they will jointly develop and market a low-carbon hydrogen and ammonia production and export facility at the Enbridge Ingleside Energy Center near Corpus Christi. Enbridge acquired the Ingleside crude export terminal last year in a $3 billion deal with Houston-based Moda Midstream LLC.
Enbridge and Humble estimate the potential cost of the new project would be between $2.5 billion and $3 billion, an Enbridge spokesperson said.
The unit that Enbridge and Humble plan to add would turn natural gas into so-called “blue” hydrogen — a term related to the way the gas is converted and fact that the carbon dioxide by-product is captured and stored — along with ammonia. Up to 95% of the carbon dioxide generated in the production process will be sequestered in newly developed carbon capture infrastructure, including facilities to be owned and operated by Enbridge, the announcement states.
Texas Eastern Transmission Pipeline, an Enbridge affiliate, is expected to provide the transportation service for the natural gas feedstock.
Enbridge and Humble are in discussions with several potential offtake customers, and the decision to move forward with the project depends on securing enough customer support and receiving necessary regulatory approvals. If the customer support and regulatory approvals are secured, the companies are aiming for an in-service date in 2026, the spokesperson said.
“This is a good example of how Enbridge is leveraging existing conventional energy assets and capabilities to extend growth and capitalize on low-carbon opportunities in the energy transition,” said Colin Gruending, Enbridge executive vice president and president of liquids pipelines. “The EIEC is already the premier export facility on the U.S. Gulf Coast and will play an even greater role in global energy security and sustainability. We’re excited to work with Humble to further develop this opportunity.”
Enbridge had been interested in acquiring the Ingleside Energy Center, the country’s largest crude export terminal by volume, for years, an executive told the Houston Business Journal in September. Beyond the sheer scale of the facility, Enbridge also saw potential for the former U.S. Navy station-turned-export-terminal to host projects more in line with the energy transition than with legacy oil and gas operations, the executive said at the time.
Enbridge also plans to build out at least 60 megawatts of solar-power production capacity on 500 acres on the Ingleside Energy Center property — more than should be required to power the terminal.
Enbridge is headquartered in Calgary, Alberta, but the firm is also one of the largest energy employers in the Houston market. Earlier this year, Enbridge announced plans to move its Houston office from the Galleria area to the Energy Corridor.
Enbridge has approximately 1,000 employees at its Houston office, and the new space will still have room for the company to grow, the company said at the time.
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