Enbridge to buy Moda for $3 billion in bet on U.S. oil exports

Enbridge Inc., the Canadian pipeline giant, agreed to acquire Moda Midstream Operating LLC for $3 billion to add U.S. Gulf Coast oil export capacity.

Enbridge is buying Moda for cash from EnCap Flatrock Midstream, it said Tuesday in a statement.

The deal will connect Enbridge with oil produced in the Permian and Eagle Ford shale basins. It also includes Ingleside Energy Center, near Corpus Christi, Texas, North America’s largest crude export terminal, which loaded 25% of all U.S. Gulf Coast crude exports last year.

“Our strategy is driven by the important role that low cost, sustainable North America energy supply will play in meeting growing global demand,” Enbridge Chief Executive Officer Al Monaco said in the statement.