Enbridge Inc. says it will spend about US$700 million to build new crude oil and natural gas pipelines in the U.S. Gulf of Mexico for the Kaskida development, operated by BP Exploration & Production Co. Enbridge workers weld pipe just west of Morden, Man., Thursday, Aug. 16, 2018.THE CANADIAN PRESS/John Woods
Enbridge Inc. is expanding its investment in the U.S. Gulf of Mexico, announcing plans to spend approximately $700 million on new oil and gas pipelines. The project supports the recently approved Kaskida development, operated by BP Exploration & Production Co.
The company’s crude oil pipeline, called the Canyon Oil Pipeline System, will transport up to 200,000 barrels of oil per day from the Keathley Canyon area of the Gulf. It will deliver oil to the Green Canyon 19 offshore platform, managed by Shell Pipeline Co. LP, which will then transport it to the Louisiana market.
In addition, Enbridge will build a natural gas pipeline named the Canyon Gathering System. This pipeline, with a daily capacity of 125 million cubic feet, will connect to the existing Magnolia Gas Gathering Pipeline. According to Enbridge, detailed design work and material procurement are set to begin early next year, and both pipelines are expected to be operational by 2029.
Enbridge has made significant investments in the Gulf Coast, aiming to strengthen its role in meeting global energy demands. The company already supplies natural gas to five active liquefied natural gas (LNG) export terminals in the region and owns North America’s largest crude export terminal, the Ingleside Energy Center, located near Corpus Christi, Texas.
BP's Kaskida project, approved in July, marks the energy giant's sixth major hub in the Gulf of Mexico. The development will include a floating production platform capable of producing 80,000 barrels of oil per day from six wells in its first phase, with production slated to begin in 2029.
Cynthia Hansen, Enbridge's executive vice-president, expressed excitement about the partnership with BP. “We are pleased to expand our relationship with BP and support their new deepwater project. This investment enhances our natural gas pipeline portfolio and strengthens our ability to meet our customers’ strategic needs,” she said in a statement.
