(Calgary) Enbridge continues to invest in the U.S. Gulf of Mexico, announcing Thursday it will spend approximately $700 million to build new crude oil and natural gas pipelines in the Gulf for the recently approved Kaskida development , operated by BP.
The crude oil pipeline, called Canyon Oil Pipeline System, will have a capacity of 200,000 barrels per day and will run from the Keathley Canyon area of the Gulf, the Calgary-based company said.
The pipeline will deliver crude to the existing Green Canyon 19 offshore platform, operated by Shell Pipeline, with the Louisiana market as its destination.
The natural gas pipeline, called the Canyon Gathering System, will have a capacity of 125 million cubic feet per day and will connect to Enbridge’s existing Magnolia gas gathering pipeline.
Detailed design and procurement activities are expected to begin early next year and the pipelines are expected to be operational by 2029, Enbridge said.
Enbridge has invested heavily in the U.S. Gulf Coast in recent years, seeking to position itself strongly to meet growing global energy demand. It already supplies natural gas to five operating liquefied natural gas (LNG) export terminals on the Gulf Coast, and also has North America’s largest crude export terminal, Ingleside. Energy Center located near Corpus Christi, Texas.
For its part, the multinational giant BP gave the green light to Kaskida, its sixth hub in the Gulf of Mexico, in July. The development will include a floating production platform with a capacity of 80,000 barrels of oil per day from six wells in its first phase. Production is expected to begin in 2029.
“We are extremely pleased to extend an existing relationship with BP and support their new deepwater development. This opportunity diversifies our offshore operations in the Gulf of Mexico, strengthens our significant natural gas pipeline portfolio and enhances our ability to meet the strategic needs of our customers,” said Cynthia Hansen, Enbridge Senior Vice President, in a press release. .