Enbridge Expands Permian Footprint With $600 Million Crude Asset Deal
Enbridge plans to expand its U.S. crude oil network through a $600 million cash purchase of Salt Creek Midstream's crude gathering business, strengthening its position in the Permian Basin.
- Enbridge will pay $600 million in cash for Salt Creek Midstream's crude gathering business.
- The transaction is expected to close later in 2026, subject to regulatory approval and customary conditions.
- The assets include nearly 500 miles of gathering pipelines across the Delaware Basin.
- The systems serve more than 20 oil producers.
- The three systems can handle a combined 420,000 barrels of crude per day and support 350,000 barrels of storage capacity.
MONTREAL (Oil Monster): Enbridge has decided to expand its U.S. crude oil network with a $600 million cash purchase of Salt Creek Midstream's crude gathering business. The deal is expected to strengthen its position in the Permian Basin. The transaction is expected to close later in 2026, subject to regulatory approval and other customary conditions.
Deal Expands Enbridge's Delaware Basin Network
The Canadian energy infrastructure company will acquire full ownership of the Orla and Wink North systems and half of the Delaware Crossing system. The deal covers nearly 500 miles of gathering pipelines across the Delaware Basin and serves more than 20 oil producers.
Long-Term Contracts Support the Acquired Assets
The assets are linked to about 320,000 net dedicated acres through long-term contracts, with an average of roughly 10 years remaining. This provides Enbridge with predictable cash flow while creating opportunities to support additional production growth.
Pipeline Capacity and Permian Connections
The three systems can handle a combined 420,000 barrels of crude per day and support 350,000 barrels of storage capacity. Their connections to major Permian pipelines are expected to provide improved access to broader transportation and export infrastructure.
Enbridge Targets a Direct Route to Ingleside Energy Center
Enbridge said the acquisition will create a more direct route from Permian wells to its Ingleside Energy Center on the Texas coast. This will strengthen its ability to provide integrated crude services from production to export.
Broader U.S. and Canadian Infrastructure Strategy
The company is also advancing its wider U.S. and Canadian energy infrastructure strategy, following government approval of its C$4 billion Sunrise Expansion Programme earlier this year.
What Readers Are Asking
What is Enbridge acquiring from Salt Creek Midstream?
Enbridge will acquire Salt Creek Midstream's crude gathering business, including full ownership of the Orla and Wink North systems and half of the Delaware Crossing system.
How much is Enbridge paying for the acquisition?
Enbridge will pay $600 million in cash.
How large is the acquired crude gathering network?
The deal covers nearly 500 miles of gathering pipelines across the Delaware Basin and serves more than 20 oil producers.
How much crude can the three systems handle?
The three systems can handle a combined 420,000 barrels of crude per day and support 350,000 barrels of storage capacity.
When is the Enbridge transaction expected to close?
The transaction is expected to close later in 2026, subject to regulatory approval and other customary conditions.