Enbridge Increases Ownership in Gray Oak Pipeline -- Energy Comment
August 17 2022 - 6:09PM
Dow Jones News
By Susan Solan
Enbridge Inc. completed a joint venture merger transaction with
Phillips 66 resulting in a single entity holding both Enbridge's
and P66's indirect ownership interests in Gray Oak Pipeline and DCP
Midstream LP.
Enbridge will increase its interest in Gray Oak to 58.5% from
22.8%, and the parties have agreed to transfer to Enbridge the
operatorship of Gray Oak, the long-haul, contracted pipeline which
provides critical, low-cost connectivity from the Permian into
Corpus Christi and the Houston area.
On the transfer:
"The transfer of operatorship of Gray Oak is planned to occur in
the second quarter of 2023. In turn, Enbridge will reduce its
indirect economic interest in DCP to 13.2% from 28.3%, further
reducing its commodity price exposure and strengthening the
company's low-risk pipeline-utility model," Enbridge said.
On future growth:
"Through 2030, the company anticipates that Permian oil supply
will grow by an estimated 2 million barrels per day, enhancing Gray
Oak's utilization and driving increased oil exports off the Gulf
Coast," Enbridge said.
On the solar power component:
Enbridge said it "intends to extend its solar self-power
strategy by working with the other Gray Oak owners to develop solar
facilities along the Gray Oak right-of-way in support of the
Company's net-zero emissions targets, and those of its
customers'."
--Write to Susan Solan at susan.solan@wsj.com
(END) Dow Jones Newswires
August 17, 2022 17:54 ET (21:54 GMT)
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