CenterPoint pipeline business buying Velocity Midstream for $442m

US oil news.
Pipelines run near oil storage tanks at the Enbridge Inc. Cushing storage terminal in Cushing, Oklahoma, U.S., on Wednesday, March 25, 2015. Photographer: Daniel Acker/Bloomberg

CenterPoint Energy’s pipeline company continues to expand nationwide, agreeing to acquire Oklahoma’s Velocity Midstream for more than $440 million.

CenterPoint’s Enable Midstream Partners said it is greatly expanding its crude oil pipeline gathering and processing network with Velocity, which holds a large network in Oklahoma’s Anadarko Basin, which expands into the Texas Panhandle, as well as in the SCOOP and Merge shale plays in Oklahoma.

Enable is controlled by Houston-based CenterPoint and Oklahoma City’s OGE Energy.

Farther north, Enable also said it plans to expand its crude oil and water pipeline gathering systems in North Dakota. Enable cited an uptick in activity in the region and a large number of drilled but uncompleted wells that are yet to produce oil.

“Today’s announcements continue Enable’s strategy of extending our reach across the midstream value chain by significantly expanding our crude business,” said Enable Midstream President and CEO Rod Sailor.

These new moves continue Enable’s spending spree of late.

Just last month, Enable said it plans to build a 165-mile gas pipeline from northwestern to southwestern Louisiana along the Texas state line. The project would take gas from the Haynesville shale and other regions and ship it down to new liquefied natural gas export terminals in Louisiana and Texas.

The gas pipeline project has an estimated price tag of $550 million.

This article first appeared on the Houston Chronicle – an Energy Voice content partner. For more from the Houston Chronicle click here.

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