Calgary-based Enbridge said this week it reached agreement with WhiteWater I Squared Capital and MPLX for a joint venture to develop, construct, own and operate natural gas pipelines and storage assets connecting natural gas supply in Permian Basin to growing demand for LNG on the Texas coast. The JV will be owned by WhiteWater I Squared (50.6 percent), MPLX (30.4 percent) and Enbridge (19.0 percent). Closing is expected in 2Q. Whitewater will continue to operate the JV assets.
The JV assets include 100 percent interest in Whistler pipeline (450 miles to transport natural gas from Waha in Permian Basin to Agua Dulce), 100 percent interest in Rio Bravo pipeline project (137 miles transporting gas from Agua Dulce to NextDecade’s Rio Grande LNG project in Brownsville), 70 percent interest in ADCC pipeline (40 miles designed to transport natural gas from Agua Dulce to Cheniere’s Corpus Christi LNG export facility) and 50 percent interest in Waha gas storage facility.
Enbridge’s Cynthia Hansen, executive president, said Tuesday, “This is a great way to enhance our super system approach – bringing energy supply to places where it is needed most and providing last-mile connectivity to domestic and export customers.”
According to Reuters, Enbridge will fund the first $150 million of post-closing capital to complete the Rio Bravo project and provide an additional $350 million cash to the JV.