Canada’s Enbridge sanctions gas, oil pipelines for BP
Canadian energy infrastructure developer Enbridge said October 3 it had sanctioned US$700mn (C$947mn) worth of natural gas and crude oil pipelines to support BP’s recently sanctioned Kaskida project in the US Gulf of Mexico.
The Canyon Gathering System would be a 12-inch, 124mn ft3/day natural gas pipeline connecting to Enbridge’s existing Magnolia Gas Gathering Pipeline, which delivers natural gas to Enbridge’s federally regulated Garden Banks Gas Pipeline.
The Canyon Oil Pipeline System will be a combination of 24-inch and 26-inch pipe with the capacity to deliver 200,000 barrels/day of crude oil from the Keathley Canyon area to the Green Canyon 19 platform, operated by Shell Pipeline Company.
“We are extremely pleased to extend an existing relationship with bp and support their new deepwater development,” said Cynthia Hansen, executive vice president of Enbridge and president of its Gas Transmission and Midstream operations. “This opportunity diversifies our Gulf of Mexico offshore business, strengthens our significant natural gas pipeline portfolio, and enhances our ability to meet the strategic needs of our customers.”
Definitive agreements between Enbridge and BP contain options which would allow BP to connect potential future production from its emerging Paleogene portfolio into the newly developed pipelines. Both the Canyon Oil and the Canyon Gas pipelines are being designed to accommodate connections from nearby discoveries.
Separately, Shell announced a final investment decision for its Rome Pipeline, which would export oil produced at Kaskida, BP’s sixth hub in the Gulf of Mexico. Production is slated to begin in 2029 from six wells in the first phase.
Detailed design and procurement activities on the Enbridge pipelines will commence in early 2025 with the pipelines expected to be operational by 2029.