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
08-17-22 1754ET