Enbridge Green Lights $700 Million Pipeline Network Plans for Gulf of Mexico

By Adriano Marchese

Enbridge plans to build a pipeline system that will connect deep water oil and gas projects in the Gulf of Mexico to the Louisiana market at the cost of $700 million.

The energy infrastructure company said Thursday that it will build, own, and operate the Canyon Oil Pipeline System in the U.S. Gulf of Mexico connecting the Kaskida development, operated by BP Exploration & Production.

For the crude oil lines, they will originate in the Keathley Canyon area and deliver crude oil and gas to the existing Green Canyon 19 platform, operated by Shell Pipeline Company and transport it to the Louisiana market, its final destination.

This pipeline will be a combination of different sized pipes with a capacity to move 200,000 barrels a day and Enbridge said that the design allows for the addition of new connections from nearby discoveries as they develop.

The natural gas pipeline, named the Canyon Gathering System, will have the capacity to move 125 million cubic feet a day through its subsea connection to Enbridge's existing Magnolia Gas Gathering Pipeline, which then delivers to Enbridge's downstream FERC-regulated Garden Banks Gas Pipeline.

Enbridge expects to begin construction early next year and for the pipelines to be operational by 2029.

Write to Adriano Marchese at adriano.marchese@wsj.com

(END) Dow Jones Newswires

October 03, 2024 07:44 ET (11:44 GMT)

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