Enbridge to acquire Salt Creek Midstream crude gathering assets in Permian basin
Enbridge Inc. has agreed to acquire Salt Creek Midstream's crude oil gathering business for $600 million, adding about 500 miles of Delaware basin gathering infrastructure that will extend the company's Permian basin-to-export crude oil value chain.
The assets include 100% interests in the Orla and Wink North systems and a 50% interest in the Delaware Crossing (DCX) system.
The systems, which serve more than 20 producers, are backed by about 320,000 net dedicated acres under long-term agreements with an average remaining contract life of about 10 years.
The Orla, Wink North, and DCX systems have combined throughput capacity of 420,000 b/d and storage capacity of 350,000 bbl. The systems connect to multiple long-haul Permian crude oil pipelines, including Enbridge's majority-owned Gray Oak Pipeline, which is undergoing a phased 120,000-b/d expansion sanctioned following a successful 2024 binding open season.
Enbridge said the acquisition will strengthen its crude oil value chain from Permian basin production to export markets through the company's Enbridge Ingleside Energy Center (EIEC), a crude export terminal near Corpus Christi, Tex.
"The acquisition will extend Enbridge's presence deeper into the Permian Basin through the addition of a highly connected crude gathering platform," said Colin Gruending, executive vice-president and president, Enbridge Liquids Pipelines.
"These assets will strengthen our value chain in the Permian Basin and Enbridge can now offer customers full wellhead-to-water integration via Gray Oak, Cactus II and the Enbridge Ingleside Energy Center," Gruending said.
The transaction is expected to close later this year, subject to customary closing conditions.