Enbridge Inc. announced plans Tuesday to acquire Moda Ingleside Energy Center – the largest crude oil export terminal by volume in the U.S. – among other assets from Houston’s Moda Midstream Operating as the pipeline company looks to strengthen its position in the Gulf of Mexico.
The deal, which carries an enterprise value of $3 billion, includes a minority, non-operating interest in the Cactus II Pipeline, which connects to MIEC; a 100% interest in Moda’s Viola Pipeline, which also connects to MIEC; and the St. James Development Project, a brownfield joint-development seeking to build independent third-party logistics solutions in Louisiana.
Moda, which is backed by San Antonio private equity firm EnCap Flatrock Midstream, selected Vinson & Elkins to guide the company on legal matters and Credit Suisse Securities to advise on financial matters (Jonathon Lurvey).
Further Texas-based counsel at V&E came from Houston partners Ryan Carney, Sean Becker, Matthew Dobbins and Christopher Popov; Dallas partner Shane Tucker; Houston and New York partner Devika Kornbacher; Dallas counsel Dario Mendoza and Sarah Mitchell; Houston senior associate Caitlin Snelson and Sean Hill; Houston counsel Scot Dixon; Houston associates Adam Bateman; Dallas associate Frank George; and Austin associate Marcus Martinez.
Sidley Austin acted as legal counsel to Calgary-based Enbridge and Barclays served as its financial advisor.
Houston counsel Atman Shukla led the Sidley team.
Additional Texas-based counsel came from Houston partners Cliff Vrielink, Heather Palmer, Angela Richards and Brian Bradshaw; Dallas partner Eric Winwood; Houston senior counsel Glenn Pinkerton; Dallas counsel Lauren Grau; and Houston associates Riley Fedechko, Sarah O’Brien and Allan Braddock.
The strategic position of MIEC gives Enbridge a meaningful foothold in a hot area as the asset links Permian and Eagle Ford production with its wellhead-to-water access, in addition to its ability to accommodate very large crude carriers.
The transaction is expected to close by the fourth quarter, pending customary closing conditions and regulatory approvals.
Moda, along with EnCap Flatrock, will retain its ownership interest in a joint venture with Vopak – Vopak Moda Houston – seeking to develop a deepwater storage and terminaling facility in the Port of Houston. Vopak Moda Houston has already constructed the storage and terminaling infrastructure for its industrial gas product line.