07:44 AM EDT, 03/26/2024 (MT Newswires) -- Enbridge Inc. ( ENB ) said Tuesday that it signed a definitive agreement with WhiteWater/I Squared Capital and MPLX LP to form a joint-venture that will develop natural gas pipeline and storage assets connecting the Permian Basin natural gas supply to growing LNG and US Gulf Coast demand.

Under the terms, the joint venture will be owned 50.6% by WhiteWater/I Squared, 30.4% by MPLX and 19.0% by Enbridge ( ENB ).

The joint venture will own 100% of the Whistler pipeline and the Rio Bravo pipelines, 70% of the ADCC pipeline and 50% of the Waha Gas Storage. Closing is expected in the second quarter.

Upon closing, Enbridge ( ENB ) will contribute its wholly-owned Rio Bravo pipeline project and US$350 million in cash to the joint venture. The company also agreed to fund the first US$150 million of the post-closing capex to complete the Rio Bravo pipeline project.

In addition, Enbridge ( ENB ) will receive a 19% equity interest in the joint venture and retain a 25% economic interest in the Rio Bravo pipeline project.

"Acquiring a meaningful equity interest in an integrated Permian natural gas pipeline and storage network that is directly connected to our existing infrastructure at Agua Dulce through this JV with WhiteWater/I Squared and MPLX is very exciting," said Cynthia Hansen, executive vice president and president of gas transmission and midstream at Enbridge ( ENB ). "This is a great way to enhance our super-system approach, bringing energy supply to places where it is needed most and providing last mile connectivity to domestic and export customers."

Enbridge ( ENB ) gained 1.2% yesterday.