August 22, 2022 [Baystreet] – Canada’s Enbridge (TSE:ENB) says it has assumed control of the Gray Oak oil pipeline in Texas.
The Calgary-based pipeline company says a deal with Houston-based energy company Phillips 66 (NYSE:PSX) has given it ownership of the Gray Oak oil pipeline, as well as DCP Midstream, a Denver, Colorado-based natural gas company.
Under terms of the deal, Enbridge will increase its indirect economic interest in Gray Oak to 58.5% from 22.8%, giving it majority control.
Gray Oak is a 1,367-kilometre pipeline capable of shipping 900,000 barrels of oil a day from the Permian Basin to the U.S. Gulf Coast.
Enbridge has been growing its presence in the U.S. Gulf Coast in recent years. In 2021, the company acquired the Ingleside Energy Center, the largest crude oil export terminal in North America, which is based in Corpus Christi, Texas.
Enbridge stock is up 12% this year at $55.22 per share.
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