Enbridge’s New Pipeline Ventures in the US Gulf of Mexico to Support BP’s Deepwater Development
Enbridge, a leading energy infrastructure company, has unveiled plans to construct and operate new crude oil and natural gas pipelines in the US Gulf of Mexico in support of BP’s recently approved Kaskida deepwater development project.
The crude oil pipeline, known as the Canyon Oil Pipeline System, will feature 24-inch and 26-inch diameter pipes with a capacity of 200,000 barrels per day. Originating from the Keathley Canyon area, the pipeline will transport crude oil to Shell Pipeline Company LP’s Green Canyon 19 platform and further into the Louisiana market, solidifying Enbridge’s role in transporting deepwater crude to the US mainland.
In addition to the oil pipeline, Enbridge will build a natural gas pipeline called the Canyon Gathering System, designed with a 12-inch diameter and a capacity of 125 million cubic feet per day. This system will connect subsea to Enbridge’s Magnolia Gas Gathering Pipeline, facilitating the transportation of gas to the Garden Banks Gas Pipeline, a FERC-regulated pipeline system, ensuring efficient delivery of natural gas to onshore markets.
The Kaskida project, BP’s sixth operated hub in the US Gulf of Mexico, boasts an initial production capacity of 80,000 barrels of oil per day from six wells. Located in the Keathley Canyon area, Kaskida taps into an estimated 275 million barrels of recoverable oil equivalent and holds the potential for additional development phases.
Significantly, the project serves as a cornerstone for unlocking up to 10 billion barrels of discovered resources in the broader Kaskida and Tiber regions. Leveraging advanced 20K drilling technology, the hub will develop high-pressure reservoirs to drive deepwater oil extraction efforts.
Enbridge’s partnership with BP includes long-term contracts and provisions allowing for the potential connection of future discoveries in BP’s Paleogene portfolio to the new pipeline systems. These pipelines are designed with the flexibility to accommodate additional connections from nearby oil and gas fields, enabling potential future expansion.
Detailed design work and procurement activities for the new pipelines are set to begin in early 2025, with operations expected to commence by 2029. The overall project cost is estimated at around US$700 million, aligning with Enbridge’s strategic objectives to diversify its offshore business.
Cynthia Hansen, Executive Vice President and President of Gas Transmission and Midstream at Enbridge, emphasized the significance of the Canyon Oil and Gas pipelines in expanding the company’s presence on the US Gulf Coast. The agreements with BP are poised to generate stable cash flow and foster future growth opportunities for both companies.
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