Enbridge, Inc’s $25 Million Acquisition of Rio Bravo Pipeline Company


Vinson & Elkins advised Enbridge Inc. (Enbridge) in connection with a definitive agreement whereby Enbridge will acquire Rio Bravo Pipeline Company, LLC from NextDecade Corporation for a cash purchase price not to exceed $25 million, with $15 million paid at closing.

Enbridge Inc. is taking ownership of a South Texas pipeline project expected to lead to over a billion dollars of future growth opportunities for the Calgary, Alberta-headquartered midstream company to support the growing LNG export market.

The Rio Bravo Pipeline is designed to transport up to 4.5 billion cubic feet per day of natural gas from the Agua Dulce supply area to NextDecade’s Rio Grande LNG project in Brownsville, Texas.

Enbridge said the acquisition may lead to $1.7 billion of future growth opportunities to supply the Rio Grande and Annova LNG facilities should the projects reach final investment decision (FID).

The V&E corporate team was led by partners Doug Bland (Picture) and Danielle Patterson with assistance from associates Caroline McDonald and Alicia Vesely. Also advising were partner Jay Seegers, counsel Damien Lyster and associate Tray Smith; partners Larry Nettles and Matthew Dobbins; partner Ryan Carney and associates Christine Mainguy and Dan Henderson; partner Brian Bloom; and partner Sean Becker and counsel Christie Alcalá.

Involved fees earner: Christie Alcalá – Vinson & Elkins LLP; Sean Becker – Vinson & Elkins LLP; Douglas Bland – Vinson & Elkins LLP; Brian Bloom – Vinson & Elkins LLP; Ryan Carney – Vinson & Elkins LLP; Matthew Dobbins – Vinson & Elkins LLP; Daniel Henderson – Vinson & Elkins LLP; Damien Lyster – Vinson & Elkins LLP; Christine Mainguy – Vinson & Elkins LLP; Caroline McDonald – Vinson & Elkins LLP; Larry Nettles – Vinson & Elkins LLP; Danielle Patterson – Vinson & Elkins LLP; James Seegers – Vinson & Elkins LLP; Tray Smith – Vinson & Elkins LLP; Alicia Vesely – Vinson & Elkins LLP;

Law Firms: Vinson & Elkins LLP;

Clients: Enbridge Inc;

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Author: Ambrogio Visconti