November 14, 2022 [ENBRIDGE] – Enbridge’s U.S. Gulf Coast strategy continues to evolve.
In October 2021, we purchased the Enbridge Ingleside Energy Center near Corpus Christi, TX, the largest crude oil export facility in the United States by volume.
In August 2022, we increased our ownership in the Gray Oak Pipeline, an 850-mile, cross-Texas conduit that connects the Permian Basin with Texas market centers, including Ingleside.
And now, a similar ownership boost in another Texas long-haul pipeline.
Today, Enbridge, Plains All-American Pipeline, L.P. and Western Midstream Partners, L.P. announced that Enbridge and Plains have purchased Western Midstream’s 15% ownership share in the 670,000-barrel-a-day Cactus II pipeline, which travels 575 miles from Wink, TX to Ingleside, for an aggregate $265 million.
As part of the transaction, Enbridge’s ownership interest in Cactus II rises to 30% from 20%. Plains, with a 70% ownership stake, remains the operator.
“Today’s announcement is another important step in advancing our USGC strategy to connect growing Permian production to global export markets,” says Enbridge’s Colin Gruending, Executive Vice President and President of our Liquids Pipelines group.
“The Cactus II pipeline specifically adds to our advantaged light oil integrated value chain providing low-cost access to the best markets for our shippers.”
Cactus II, in combination with Ingleside, provides a premier and industry-leading solution to deliver abundant, responsibly produced North American energy supplies to the U.S. Gulf Coast and global markets.
Ingleside, with three deep-water vessel berths and proximity to open water and international shipping lanes, has the fastest loading rates in the U.S. Gulf Coast, at 160,000 barrels per hour.
Gray Oak, which began operations in 2019, has an average annual capacity of 900,000 barrels per day, with Enbridge holding a 58.5% ownership interest.
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