Enbridge Inc. said Wednesday it will acquire the crude oil gathering business of Salt Creek Midstream for US$600 million in cash [1].
The deal allows the Canadian pipeline operator to deepen its footprint in the crude-rich Permian Basin. By controlling more gathering assets, Enbridge aims to create a direct link between production sites and export markets, including the Ingleside Energy Center [2].
The acquisition targets assets located in West Texas, with a specific focus on the Delaware Basin region [1]. As part of the agreement, Enbridge will take 100% ownership of the Orla and Wink North systems [3].
Additionally, the company will acquire a 50% stake in the Delaware Crossing system [3]. These assets are critical for moving crude oil from the wellhead to larger transmission pipelines that carry the product to refineries, or coastal terminals.
Enbridge has been expanding its presence in the U.S. energy infrastructure sector. This move strengthens its ability to manage the flow of oil from one of the most productive oil fields in the world—the Permian Basin—to global markets [2].
The company said the transaction occurred on Aug. 26 [4]. The purchase price of US$600 million [1] reflects the strategic value of the gathering networks in an environment where export capacity is increasingly vital for Permian producers.
“Enbridge will purchase Salt Creek Midstream's crude oil gathering assets for US$600 million in cash.”
This acquisition represents a vertical integration strategy by Enbridge to control more of the midstream value chain. By securing gathering assets in the Delaware Basin, Enbridge reduces its reliance on third-party gatherers and ensures a steady stream of crude is funneled toward its own export infrastructure, potentially increasing its margins and operational control over the Permian-to-coast pipeline route.
