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)

Copyright (c) 2022 Dow Jones & Company, Inc.
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