CALGARY — Enbridge Inc. says it has signed a deal to form a joint venture to help connect Permian Basin natural gas to the U.S. Gulf Coast.

Under the deal, Enbridge will contribute its Rio Bravo pipeline project and US$350 million in cash to the joint venture. It will also fund the first US$150 million of the post-closing capital spending to complete the project.

The joint venture will also hold the Whistler pipeline from the Permian Basin to Agua Dulce, Texas, a 70 per cent interest in the ADCC pipeline and a 50 per cent stake in the Waha Gas Storage.

WhiteWater/I Squared will hold a 50.6 per cent interest in the joint venture, while MPLX will own 30.4 per cent.

In addition to receiving a 19.0 per cent equity interest in the joint venture, Enbridge will keep a 25 per cent economic interest in the Rio Bravo project.

The deal is expected to close in the second quarter of 2024, subject to regulatory approvals and other customary closing conditions.

This report by The Canadian Press was first published March 26, 2024.

Companies in this story: (TSX:ENB)

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