Alberta-based Enbridge Inc. reported on Thursday that it plans to buy the South Texas gas gathering, treating and transmission assets of the Williams Companies for $50 million. The deal includes 492 miles of Ferc-regulated gas transmission and 298 miles of non-FERC regulated gathering systems and pipeline laterals.

The deal is the first acquisition for Enbridge’s recently created Transportation Group South, which is based in Houston and includes for former Midcoast Energy assets, which Enbridge bought earlier this year. The group has overall responsibility for Enbridge’s U.S. business activities. The assets will be owned and operated by Enbridge’s wholly owned subsidiary, Enbridge Midcoast Energy Inc.

“Acquisition of these assets enables Enbridge to further expand its geographic footprint and scale of operations,” said Dan C. Tutcher, Enbridge vice president, Transportation Group South. “It levers off the expertise that Enbridge Midcoast Energy has developed in gas gathering, processing and transportation, and enhances our position in the active Gulf Coast region. In addition to its strategic value, we expect the acquisition to be immediately accretive to Enbridge earnings, and to have potential for future expansion.”

Enbridge said the transmission assets include two pipelines that run from near the Texas-Mexico border at Laredo and McAllen to Transco Station 30 where they connect with the Transco mainline, which has connections at the Katy hub and continues on to the U.S. Southeast and Northeast.

The company said the non-FERC regulated assets include a 130-mile gathering system with a 90 MMcf/d capacity sour gas treatment plant and 78 ton per day sulphur recovery facility, 130 miles of other gathering laterals, a currently inactive processing plant in Bee County with capacity of 60 MMcf/d and a 38-mile lateral connecting the two FERC-regulated mainlines.

Enbridge said the closing of the acquisition is subject to regulatory approvals, including approval by FERC.

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