Skip to Content News Archives Economy Energy Oil & Gas Renewables Electric Vehicles Mining Commodities Agriculture Real Estate Mortgages Mortgage Rates Finance Banking Insurance Fintech Cryptocurrency Work Wealth Smart Money Wealth Management Investor Personal Finance Family Finance Retirement Taxes High Net Worth FP Comment Executive Women Puzzmo Newsletters Financial Times Business Essentials More Innovation Information Technology FP500 Podcasts Small Business Lives Told Tails Told Shopping Financial Post Store Obituaries Place a Notice Advertising Advertising With Us Advertising Solutions Postmedia Ad Manager Sponsorship Requests Classifieds Place a Classifieds ad Working Profile Settings My Subscriptions My Offers Newsletters Customer Service FAQ News Economy Energy Mining Real Estate Finance Work Wealth Investor FP Comment Executive Women Puzzmo Newsletters Financial Times Business Essentials HomeCommoditiesEnergyOil & GasCanada’s Enbridge to buy American oil business for US$600 millionThe deal brings hundreds of kilometres of Salt Creek Midstream's assets under Enbridge's wing and could hint at longer-term ambitions in the southern U.S.Last updated 38 minutes ago Enbridge Inc. is making a US$600-million acquisition of crude oil pipeline assets near Texas and New Mexico. Photo by U.S. Brunswick News ArchiveCalgary-based Enbridge Inc. is expanding its footprint in the United States with a US$600-million acquisition of crude oil pipeline assets near Texas and New Mexico.Subscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman, and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.Subscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.Create an account or sign in to continue with your reading experience.Access articles from across Canada with one account.Share your thoughts and join the conversation in the comments.Enjoy additional articles per month.Get email updates from your favourite authors.Create an account or sign in to continue with your reading experience.Access articles from across Canada with one accountShare your thoughts and join the conversation in the commentsEnjoy additional articles per monthGet email updates from your favourite authorsSign In or Create an AccountorEnbridge agreed to take over 800 kilometres of oil gathering infrastructure from Houston-based Salt Creek Midstream, allowing the Calgary pipeliner greater connectivity between wells in the Delaware Basin and the Gulf Coast export market.Enbridge has been investing on both sides of the border recently, but much of its capital has gone to the U.S. through things such as pipeline expansions and Wednesday’s acquisition.The deal’s announcement comes at a time of heightened cross-border tensions between Canada and its southern neighbour, after trade talks between the two countries broke down over the weekend.Charles St-Arnaud, chief economist at Servus Credit Union, says the timing of trade talks collapsing may change the way some react to the announcement.“If that announcement had happened last week, we wouldn’t be concerned,” St-Arnaud said.Still, Canadian businesses need to continue and not get overly distracted by what’s happening between the two countries, he added.“Unless they decide, and their shareholders decide . . . ‘Let’s focus more on our Canadian operations’,” St-Arnaud said. “I don’t think we’re going to see that yet.”Canadian pipeline outfits such as TC Energy Corp., Pembina Pipeline Corp., South Bow Corp. and Enbridge have long operated in the U.S.Moshe Lander, an economist at Concordia University and an Alberta resident, said that despite the acquisition, Canada is the place where Enbridge’s “bread is buttered.”“These things sometimes happen at bad times, and this is one of those things,” Lander said.“Business still goes on, life goes on, and I don’t know that they have the ability to say let’s delay the announcement for full disclosure on a publicly traded company,” Lander said.He suspects that talks were likely underway for months ahead of the deal, well before trade tensions arose.In general, Enbridge is more optimistic about growth across North America than it has been in many years.“What is becoming increasingly clear is that the energy industry has re-entered a growth phase, Greg Ebel, Enbridge’s chief executive, told analysts on the company’s latest earnings call.“As producers’ confidence improves and the policy environment becomes increasingly supportive of growing production, new infrastructure will be required to support future growth across the continent,” he said.Enbridge’s acquisition from Salt Creek Midstream could hint at longer-term ambitions in the Delaware Basin and wider Permian Basin, analysts at U.S.-based firm Plainview Energy Analytics say.They note that production in the Permian is climbing, while pipeline capacity heading for the Gulf Coast is tightening — and could reach capacity in the next two years if oil prices remain elevated.“Owning wellhead connections will strengthen Enbridge’s position if it pursues building a new long-haul egress project,” the analysts wrote.All told, the new gathering lines have a capacity of 420,000 barrels per day, and can deliver to multiple export pipelines, such as Gray Oak, which is majority-owned by Enbridge.The deal is expected to close later this year.FP West: Energy Insider brings you behind the closed doors of the oilpatch, with exclusive insights from insiders every Wednesday morning. 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