Ingleside’s Moda Midstream LLC announced last week that they have entered into a definitive agreement to sell the Moda Ingleside Energy Center (MIEC) and other Moda assets to Enbridge Inc. for approximately $3 billion. The facility will be renamed Enbridge Ingleside Energy Center (EIEC).
Enbridge Inc. is a leading North American energy infrastructure company.
MIEC is the nation’s largest crude export terminal by volume, having loaded more than 25% of all U.S. Gulf Coast crude exports in 2020. In May 2020, the MIEC expanded its storage capacity to hold more than 15 million barrels and increased its export capacity to 1.6 million barrels per day.
In a statement, Enbridge Inc. said the asset serves as a critical link connecting the Permian Basin and Eagle Ford Shale oil basins to international markets.
The company added, “MIEC’s proximity to open water combined with its very large crude carrier (VLCC) capability and rapid loading rates position it globally as one of the most important export facilities in the world.
“MIEC provides customers an unparalleled advantage due to its wellhead-to-water access and direct connectivity to next-generation long-haul crude pipelines, including Cactus I, Cactus II, Gray Oak, EPIC and the Harvest Ingleside pipeline.”
“MIEC is a flagship asset,” Moda Midstream President, CEO and Founder Bo McCall said. “We are very proud of the safe and responsible growth we have achieved since we purchased the asset less than three years ago (Private equity firm EnCap Flatrock Midstream owns Moda, which purchased the Ingleside export facility from Occidental Petroleum Corp. in August 2018).
“The site was originally designed by the U.S. Navy to support a carrier battle group and, despite the uncertainty following its closure, has developed into the nation’s largest exporter of crude oil, creating jobs and economic prosperity for the Coastal Bend.
“I want to congratulate everyone on the Moda team for their excellent work and many accomplishments. We are all excited to watch and support MIEC’s continued development and operational excellence under the ownership of a world-class company like Enbridge.”
The company also purchased Moda’s terminal in Taft with plans to create renewable energy facilities in the area, just like the Port of Corpus Christi is currently in the process of doing in and around San Patricio County.
Enbridge said the deal fits with their sustainability focus, as the terminal includes plans to develop a solar power farm and may be suitable longer-term for carbon capture and storage the company said.
A statement on the company’s website stated, “EIEC has been recently constructed to industry-leading environmental standards designed to minimize its carbon emissions footprint. Enbridge expects to further lower facility emissions through the application of up to 60 megawatts of solar power capabilities, leveraging more than 500 acres of available land included within the terminal.
“This renewable investment is expected to well exceed EIEC’s power requirements, allowing excess generation capacity to be contracted to local industrial and refining facilities while driving a robust return.”
At the beginning of the month, the Port of Corpus Christi Authority entered into a memorandum of understanding (MOU) with the Texas General Land Office (GLO) stating their intention to also co-develop a carbon dioxide (CO2) storage solution in the Coastal Bend in support of national decarbonization targets. Such a solution would involve infrastructure to transport and permanently store CO2 captured by various industrial target sources in the greater Port of Corpus Christi area – meaning San Patricio County where the port recently purchased land.
“The energy transition is a strategic focus in hitting both commercial and environmental targets for the Port of Corpus Christi,” Port of Corpus Christi CEO Sean Strawbridge said. “We are sending a clear message to the American people, to our industry partners, and to the global energy marketplace that the state of Texas and the Port of Corpus Christi intend to establish a large scale CCS management hub and we thank Texas Land Commissioner Bush and his staff for their aligned leadership and commitment to achieving this goal.”
Back to the oil industry side, Moda Executive Vice President, COO and Founder Javier del Olmo will join Enbridge as USGC Terminaling Operations Vice President with key Moda personnel and the entire MIEC team joining del Olmo at Enbridge as the core of the new USGC Terminaling team in Enbridge’s Liquids Pipelines business unit.
The sale is expected to close by the end of this year.
“When we first backed the Moda management team, we had high expectations of what this talented group would achieve,” said EnCap Flatrock Managing Partner Billy Lemmons. “Bo, Jon, Javier and their outstanding team have exceeded our every expectation. This is a significant transaction that will produce strong results for our investors and add value to Enbridge’s impressive asset portfolio. In addition, we are excited to continue our partnership with the Moda team to further enhance Vopak Moda Houston’s growth and development and explore new opportunities.”