Enbridge Inc has completed the purchase of Shell Gas Transmission from Shell US Gas & Power. It paid $613 million for the business, plus associated working capital.
The newly acquired Gulf of Mexico offshore natural gas pipeline assets include ownership interests in 11 transmission and gathering pipelines in five major pipeline corridors that transport around three billion cubic feet per day. The 1,482 miles of pipeline transport approximately half of all deepwater natural gas production in the Gulf of Mexico.
The successful acquisition of these strategic offshore Gulf assets underlines our commitment to organic growth and to being one of the nation’s leading energy transporters, said Dan Tutcher, Enbridge Group vice president, Transportation South. We are now well positioned to move much of the developing deepwater gas supply and to accommodate the potential transport needs of several proposed LNG re-gasification projects.
Most of the Shell Gas Transmission (SGT) employees and management team have chosen to join Enbridge’s Houston-based business unit, which Tutcher commented would enable the company to quickly integrate these assets into its natural gas business.
Enbridge specializes in energy transportation and distribution, in North America and internationally. As a transporter of energy, Enbridge operates, in Canada and the US, the world’s longest crude oil and liquids transportation system. The company also has international operations and a growing involvement in the natural gas transmission and midstream businesses.