With an aggregate storage capacity of more than 15 million barrels, Moda Ingleside is a light crude export platform built on the US Gulf Coast to serve as a vital link connecting production from the Permian and Eagle Ford basins to global markets
Enbridge has agreed to acquire the Moda Ingleside Energy Center (MIEC) and other assets in a deal worth around $3bn signed with Moda Midstream and its financial sponsor EnCap Flatrock Midstream.
Moda Ingleside Energy Center is a light crude export platform on the US Gulf Coast.
The crude export terminal is located in Ingleside, Texas. It is said to be the largest of its kind in the US on the basis of volume.
The Moda Ingleside Energy Center is claimed to have loaded more than 25% of all the crude exports from the US Gulf Coast in 2020.
Its aggregate storage capacity is over 15 million barrels, and its export capacity is 1.6 million barrels per day.
The terminal is expected to be renamed as Enbridge Ingleside Energy Center. It is supported by 925,000 barrels per day of long term take-or-pay vessel loading contracts as well as 15.3 million barrels of long-term storage contracts.
Built in 2018, the light crude export platform is said to be a vital link connecting production from the Permian and Eagle Ford basins to global markets.
Enbridge president and CEO Al Monaco said: “Over the last several years we’ve been building a strong position in the U.S. Gulf Coast through both natural gas and crude infrastructure. Our strategy is driven by the important role that low cost, sustainable North America energy supply will play in meeting growing global demand.
“With close proximity to world-class Permian reserves, and with cost effective and efficient export infrastructure, our new Enbridge Ingleside terminal will be critical to capitalising on North America’s energy advantage.”
Other assets included in the deal are Moda Midstream’s Taft Terminal, which is located near the Moda Ingleside Energy Center and a minority, non-operating stake of 20% in the Cactus II pipeline.
Besides, Enbridge will fully acquire Moda Midstream’s 3,00,00 barrels per day Viola pipeline and the company’s 50% stake in the brownfield St. James deep-water crude and refined products terminal development opportunity.
Moda Midstream and EnCap Flatrock Midstream will retain ownership in Vopak Moda Houston, a deepwater storage and terminaling facility in the Port of Houston.
Moda Midstream president, CEO, and founder Bo McCall said: “MIEC is a flagship asset. We are very proud of the safe and responsible growth we have achieved since we purchased the asset less than three years ago.
“The site was originally designed by the U.S. Navy to support a carrier battle group and, despite the uncertainty following its closure, has developed into the nation’s largest exporter of crude oil, creating jobs and economic prosperity for the Coastal Bend.”
The deal, which is subject to customary regulatory approvals and closing conditions, is anticipated to close in Q4 2021.