Enbridge Inc said on Tuesday it was buying logistics company Moda Midstream Operating LLC from private-equity firm EnCap Flatrock Midstream for $3 billion in cash, as the pipeline company ramps up its operations in the U.S. Gulf Coast region.
Oil companies are strengthening their presence in the U.S. oil patch as crude oil prices climb to more than two-year high.
The deal gives Enbridge access to Moda’s export terminal Moda Ingleside Energy Center (MIEC) and other assets like Viola pipeline, Taft Termina and Cactus II Pipeline.
The deal, which is expected to close in the fourth quarter, is expected to immediately add to Enbridge’s financial outlook.
(Reporting by Rithika Krishna in Bengaluru; Editing by Shinjini Ganguli and Anil D’Silva)