Enbridge joint venture to connect Permian Basin natural gas to U.S. Gulf Coast [Video]

CALGARY –

Pipeline giant Enbridge Inc. has signed a deal to form a joint venture to help connect Permian Basin natural gas to liquefied natural gas export terminals on the U.S. Gulf Coast.

The Calgary-based company said Tuesday it will partner with global investment manager I Squared Capital and U.S. pipeline firms WhiteWater and MPLX LP.

The new joint venture will develop, construct, own, and operate natural gas pipeline and storage assets connecting the Permian (a major oil-and-gas field located in western Texas and southeast New Mexico) to growing LNG and U.S. Gulf Coast demand.

Enbridge has been bullish on both natural gas and LNG in recent years, repeatedly stating it believes demand for natural gas is not going away any time soon and that cleaner-burning LNG can be used to replace coal in parts of the world that still depend on the dirty fuel.

The Canadian company currently supplies natural gas …