Whistler Pipeline and Enbridge Agree to Strategic Combination of Whistler and Rio Bravo Natural Gas Assets

AUSTIN, Texas, March 26, 2024 /PRNewswire/ -- WhiteWater, I Squared, MPLX LP (NYSE: MPLX), and Enbridge Inc. (TSX: ENB) (NYSE: ENB) jointly announce they have entered into a definitive agreement to strategically combine the Whistler Pipeline and Rio Bravo Pipeline project in a newly formed joint venture.

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Enbridge will contribute its wholly-owned Rio Bravo Pipeline project and cash in exchange for an ownership stake in the newly formed joint venture. Following the closing of the transaction, the ownership in the joint venture will be WhiteWater/I Squared (50.6%), MPLX (30.4%), and Enbridge (19.0%). Enbridge will retain a 25% economic interest in the Rio Bravo Pipeline project as part of its investment (subject to certain redemption rights of the joint venture partners). WhiteWater will continue to operate the joint venture's assets, including the Rio Bravo Pipeline project.

The combined platform will provide significant benefits to the joint venture's customers by connecting Permian supply to incremental LNG export markets via Rio Bravo's connectivity with NextDecade's Rio Grande LNG facility. Additionally, the creation of this platform is anticipated to support the development of incremental pipeline projects connecting Permian supply to export markets along the Gulf Coast.

The transaction is expected to close in the second quarter of 2024 after receipt of required regulatory approvals and satisfaction of other customary closing conditions.

"This strategic transaction is a win for WhiteWater/I Squared and MPLX. It extends the average contract tenor, brings us closer to an important strategic partner in Enbridge and positions us well for future development opportunities supporting Gulf Coast LNG. WhiteWater is excited to add Enbridge as a partner and NextDecade's Rio Grande LNG as a customer. Together we will continue to grow our Texas pipeline network," said Christer Rundlof, Chief Executive Officer of WhiteWater.

"This transaction is a continuation of MPLX's wellhead-to-water growth strategy, enhancing our natural gas value chain in the Permian basin and South Texas. The strategic combination of these assets position the Whistler Pipeline system for future capacity expansions to meet increasing demand for natural gas supply to Gulf Coast LNG facilities," said Dave Heppner, Senior Vice President of MPLX.

"We are excited to join WhiteWater/I Squared and MPLX in a joint venture to connect sustainable Permian natural gas production to export markets as part of our USGC strategy. Acquiring a meaningful equity interest in an integrated natural gas pipeline and storage network that is directly connected to our existing infrastructure provides customers, like NextDecade, with valuable last mile connectivity and unlocks future growth opportunities," said Cynthia Hansen, EVP and President, Gas Transmission and Midstream of Enbridge.  

"The combination of Whistler Pipeline and Rio Bravo Pipeline assets confirms the importance of our Rio Grande LNG project as a major market for associated gas from the Permian Basin," said Matt Schatzman, NextDecade Chairman and Chief Executive Officer. "We are excited to have WhiteWater, I Squared, MPLX and Enbridge as partners in the delivery of the Rio Bravo Pipeline for the Rio Grande LNG project and we look forward to growing our relationship with their new joint venture."

About the Whistler Pipeline

The Whistler Pipeline has approximately 2.5 billion cubic feet per day of capacity and the system is comprised of approximately 450 miles of 42-inch diameter pipeline that transports natural gas from the Permian Basin to Agua Dulce, Texas, with direct connections to Corpus Christi and the gulf coast. The pipeline also has an approximately 85-mile, 36-inch diameter lateral to the Midland Basin.

About WhiteWater

WhiteWater is an Austin, Texas based infrastructure company, and operator of the Whistler Pipeline. WhiteWater is partnered with multiple private equity funds including but not limited to I Squared Capital. For more information about WhiteWater, visit www.wwdev.com.

About I Squared Capital

I Squared Capital is a leading independent global infrastructure investment manager with over $38 billion in assets under management focused on investing in North America, Europe, Asia, and Latin America. Headquartered in Miami, the firm has more than 260 professionals across its offices in London, Munich, New Delhi, São Paulo, Singapore, Sydney and Taipei. I Squared Capital has invested in a diverse portfolio of 82 companies with over 66,000 employees in 71 countries across the utilities, energy, digital infrastructure, transport, environmental infrastructure, and social infrastructure sectors providing essential services to millions of people around the world. You can find out more by visiting: www.isquaredcapital.com.

About MPLX LP

MPLX is a diversified, large-cap master limited partnership that owns and operates midstream energy infrastructure and logistics assets and provides fuels distribution services. MPLX's assets include a network of crude oil and refined product pipelines; an inland marine business; light-product terminals; storage caverns; refinery tanks, docks, loading racks, and associated piping; and crude and light-product marine terminals. MPLX also owns crude oil and natural gas gathering systems and pipelines as well as natural gas and NGL processing and fractionation facilities in key U.S. supply basins. More information is available at www.MPLX.com

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About Enbridge Inc.

At Enbridge, we safely connect millions of people to the energy they rely on every day, fueling quality of life through our North American natural gas, oil, and renewable power networks and our growing European offshore wind portfolio. We are investing in modern energy delivery infrastructure to sustain access to secure, affordable energy and building on more than a century of operating conventional energy infrastructure and two decades of experience in renewable power. We are advancing new technologies, including hydrogen, renewable natural gas, carbon capture, and storage, and are committed to achieving net zero greenhouse gas emissions by 2050. Headquartered in Calgary, Alberta, Enbridge's common shares trade under the symbol ENB on the Toronto (TSX) and New York (NYSE) stock exchanges. To learn more, visit us at enbridge.com.