Largest US crude oil export hub sold to Enbridge as part of $3bn deal

Largest US crude oil export hub sold to Enbridge as part of $3bn deal

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Enbridge, the Canadian pipeline company, is betting on sustained strength in US energy production with a $3bn purchase of assets including a crude oil export terminal in Texas that is North America’s largest by volume.

The company will acquire the Ingleside Energy Center near the Port of Corpus Christi and stakes in several pipelines leading from inland oilfields to the Gulf of Mexico coast, as part of an all-cash deal for assets owned by private-equity backed Moda Midstream. 

The agreement comes even as US oil drillers pull back their output targets after a decade-long growth blitz, shifting their focus to profits over pumping more crude. The deal from Calgary-based Enbridge is predicated on continued strong exports.

“Over the last several years we’ve been building a strong position in the US Gulf coast through both natural gas and crude infrastructure,” said Al Monaco, Enbridge chief executive. “Our strategy is driven by the important role that low-cost, sustainable North America energy supply will play in meeting growing global demand.”

Most US crude oil exports were banned by law as recently as 2015. Shipments surged after Congress overturned the prohibition in response