Enbridge to buy Salt Creek Midstream crude gathering assets for US$600 million

Photo courtesy of Enbridge.

Pipeline operator Enbridge said on Wednesday it would acquire Salt Creek Midstream’s crude oil gathering business for US$600 million in cash, expanding its presence in the crude-rich Permian Basin.

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The Permian Basin, the largest oil-producing region in the United States, continues to attract investment in gathering systems and pipeline networks as companies work to transport crude volumes through export terminals on the U.S. Gulf Coast.

Here are more details:

• Enbridge said the acquisition will provide a direct link between Permian crude production and its Ingleside Energy Center, North America’s largest crude export terminal.
• The deal includes full ownership of the Orla and Wink North gathering systems and a 50 per cent stake in the Delaware Crossing system, adding about 500 miles of crude oil gathering infrastructure in the heart of the Delaware Basin.
• The assets serve more than 20 producers and are backed by about 320,000 net dedicated acres under long-term commercial agreements.
• The systems have a combined throughput capacity of 420,000 barrels per day and storage capacity of 350,000 barrels.
• The assets have an average remaining contract life of about 10 years, providing stable long-term cash flows, the pipeline operator said.
• Enbridge expects the deal to be immediately accretive to cash flow and earnings per share, with closing expected later in 2026. However, it kept its 2026 financial guidance unchanged.

(Reporting by Varun Sahay in Bengaluru; Editing by Diti Pujara)