By Bruce Beaubouef, Managing Editor
Enbridge Inc. has announced that it will build, own, and operate crude oil and natural gas pipelines in the US Gulf of Mexico for the recently sanctioned Kaskida development, operated by BP Exploration & Production Company.
The crude oil pipeline, named the Canyon oil pipeline system, will have a capacity of 200,000 barrels per day. It will originate in the Keathley Canyon area and deliver crude to the existing Green Canyon 19 platform, operated by Shell Pipeline Company LP for ultimate delivery to the Louisiana market.
The natural gas pipeline, named the Canyon gathering system, will have a capacity of 125 million cubic feet per day and will connect subsea to Enbridge’s existing Magnolia gas gathering pipeline, which then delivers to Enbridge’s Garden Banks gas pipeline.
Enbridge says that the agreements contain options which bp may elect to exercise in order 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.
Enbridge says that the Canyon oil pipeline system will be approximately 140 miles in length and 24/26 inches in diameter. The Canyon gas gathering system will be approximately 60 miles in length and 12 inches in diameter. Both pipelines will originate in Keathley Canyon block 293 in approximately 5,900 feet of water. If options are exercised by bp, the Canyon oil pipeline would increase its length to approximately 200 miles and the Canyon gas gathering system would increase its length to approximately 115 miles.
Detailed design and procurement activities will commence in early 2025 with the pipelines expected to be operational by 2029. The cost of the pipelines will be approximately $700 million.
