Page 8 - NorthAmOil Week 36 2021
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NorthAmOil                             PIPELINES & TRANSPORT                                      NorthAmOil


       Enbridge to take over




       leading oil export



       terminal with $3bn



       Moda deal





        TEXAS            CANADA’S Enbridge announced this week
                         that it had struck a deal with private equity firm
                         EnCap Flatrock Midstream to acquire Moda
                         Midstream Operating for $3.0bn in cash.
                           The acquisition means that Enbridge will
                         become the 100% owner of the Ingleside Energy
                         Center. The facility, near Corpus Christi, Texas,
                         is North America’s largest crude export termi-
                         nal, accounting for 25% of all US Gulf Coast
                         oil exports in 2020. The facility, built in 2018,
                         comprises 15.6mn barrels of storage and 1.5mn
                         barrels per day (bpd) of export capacity. It has
                         the capacity to handle very large crude carriers
                         (VLCCs) – though these vessels, which have a  driving a robust return,” Enbridge stated. It
                         maximum capacity of 2mn barrels of oil, can  added that in the longer term, there was poten-
                         only be partially loaded at the terminal.  tial to develop additional low-carbon infra-
                           The terminal will be renamed as the Enbridge  structure, including renewable fuels and carbon
                         Ingleside Energy Center (EIEC) once it changes  capture capacity.
                         hands.                                 “This investment is also a prime example
                           In a September 7 statement, Enbridge talked  of how we’re focused on being a differentiated
                         up the terminal’s “advantaged” harbour location,  service provider to our customers by lowering
                         with direct connections to Texas’ Permian and  emissions across our systems,” stated Enbridge’s
                         Eagle Ford shale regions. The facility is under-  president and CEO, Al Monaco. “In line with
                         pinned by 925,000 bpd of long-term take-or-pay  that objective, we expect to develop solar power
                         vessel loading contracts and 15.3mn barrels of  capacity at the terminal site, which will ensure
                         storage contracts, which Enbridge said provides  it’s the most sustainable export facility in North
                         “visibility to future cash flows”.   America and support our company-wide goal of
                           The acquisition is in line with Enbridge’s  net zero by 2050.”
         It is planning   efforts to build a strong position on the Gulf   Along with the Ingleside terminal, Enbridge
         to add up to    Coast as demand grows for low-cost sources of  will acquire a 20% stake in the 670,000 bpd Cac-
        60 MW of solar   oil. There is also potential for the terminal to be  tus II Pipeline, a 100% operating interest in the
                         expanded, with Enbridge saying storage capacity  300,000 bpd Viola pipeline, and a 100% oper-
       power generation   was permitted to be raised to 21mn barrels and  ating stake in the 350,000 barrel Taft terminal
                                                              through its purchase of Moda. The company
                         export capacity to 1.9mn bpd.
                           In addition, Enbridge will own a 50% inter-
                                                              said that together, the assets will provide a fully
        capacity at the   est in a brownfield St James deepwater crude  integrated light crude export platform.
             site.       and refined products terminal development   The deal has, however, raised questions over
                         opportunity, which it said provides longer-term  another Gulf Coast export terminal project in
                         growth potential.                    which Enbridge is participating. The company
                           The company also sought to highlight how  has teamed up with Enterprise Products Part-
                         the asset would fit in with its growing focus on  ners to build the Sea Port Oil Terminal (SPOT)
                         sustainability. According to its statement, it is  near Houston. That project would more directly
                         planning to add up to 60 MW of solar power  to serve heavy oil producers in Western Canada,
                         generation capacity at the site, making use of  but there is speculation that it could now be less
                         the over 500 acres (2 square km) of land that is  of a priority for Enbridge.
                         included in the purchase.              Indeed, a National Bank analyst, Patrick
                           “This renewable investment is expected to  Kenny, wrote in a research note this week
                         well exceed EIEC’s power requirements, allow-  that Enbridge’s commitment to funding the
                         ing excess generation capacity to be contracted  SPOT terminal “could be modest” given the
                         to local industrial and refining facilities while  Moda deal.™



       P8                                       www. NEWSBASE .com                      Week 36   09•September•2021
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