Canadian midstreams making US moves

By North American Shale magazine staff | June 22, 2018

For $1.12 billion, AL Midcoast Holdings LLC has acquired the Texas, Oklahoma and Louisiana midstream assets of Enbridge Inc. The businesses included in the deal are natural gas gathering, treating, processing and transportation, as well as NGL transportation assets located in the east Texas, western Anadarko and Barnett shale plays and consist of approximately 11,200 miles of natural gas gathering and transportation pipelines, 2.075 million cubic feet per day (MMcf/d) of natural gas processing capacity and 1,330 MMcf/d of treating capacity.

Al Monaco, president and CEO of Enbridge, said the sale will help Enbridge shift towards a “pure regulated pipeline and utility model.”

The deal should close in Q3. Prior to the sale, the newly formed AL Midcoast had been in charge of operating and running the assets. According to AL Midcoast, the workforce and team running the assets will be maintained.

Another Canadian-based energy company has also made U.S. moves. Calgary-based Keyera Corp. has announced plans to build a 4.5 million crude storage and blending facility at Cushing, Oklahoma. Keyera currently operates an integrated Canadian-based midstream business with interconnected assets and expertise in midstream solutions. The Wildhorse Terminal in Cushing will feature 12 above-ground tanks. “The Wildhorse terminal is a strategic investment for Keyera as it expands our midstream infrastructure in the U.S. at once of the largest crude oil storage and trading hubs in North America,” said David Smith, Keyera’s president and CEO.