Energy transfer increases natural gas and petroleum capacity with licensing acquisition completed

Dallas-based Energy Transfer LP owns and operates an additional 14,000 miles of gas and oil pipelines in Arkansas, Louisiana, Oklahoma and Texas after completing its merger earlier this month with Enable Midstream Partners LP.

The $ 7.2 billion merger, first announced in February, strengthens intermediate transportation and gas systems in Oklahoma’s Anadarko Basin, as well as intra-state and interstate pipelines in the Oklahoma and surrounding states.

The merger also strengthens Energy Transfer’s gas gathering and processing assets in the Arkoma Basin across Oklahoma and Arkansas, as well as in the Haynesville Shale in eastern Texas and northern Texas. Louisiana. In total, Energy Transfer said it has over 114,000 miles of pipelines and other infrastructure.

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Enable’s assets include approximately 14,000 miles of natural gas, crude oil, condensate and produced water pipelines, approximately 2.6 Bcf / d of natural gas processing capacity and approximately 7,800 miles of inter -States. Its portfolio also includes approximately 2,200 miles of intrastate pipelines and seven natural gas storage facilities comprising 84.5 billion cubic feet of storage capacity.

When the deal was announced, Energy Transfer said it could leverage the combination to increasingly meet global demand for US liquefied natural gas (LNG) exports. “Energy Transfer will further improve its connectivity to the global LNG market and to the growing global demand for natural gas as the world shifts to cleaner energy and fuel sources,” he said at the time.

Enable received federal approval in June to build the Gulf Run pipeline. The $ 540 million pipeline project is supported by a 20-year 1.1 Bcf / d commitment from key shipper Golden Pass LNG. Gulf Run is expected to be in service at the end of 2022. Golden Pass is underway at Sabine Pass on the upper Texas coast.

Energy Transfer, meanwhile, continues to face setbacks in its attempt to expand the controversial Dakota Access pipeline. The pipeline subsidiary asked the United States Supreme Court to rule on the case in September.

Energy Transfer said the merger with Enable is expected to generate fee-based cash flow from the fixed-fee contracts. The combined operations are expected to generate annual cost and efficiency synergies of over $ 100 million.

For each common unit, the holders of Enable units received 0.8595 Energy Transfer common unit. The transaction also included a cash payment of $ 10 million to Enable’s general partner.

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