Enbridge, LOOP plan Gulf of Mexico crude oil pipeline

Enbridge Inc., Calgary, and LOOP LLC, New Orleans, have proposed a new crude oil pipeline that will carry 600,000 b/d of crude oil from the eastern Gulf Coast to refineries on the western Gulf Coast (see map [126,458 bytes]).

The companies intend to build the line to meet growing demand for heavy, sour oil by western Gulf Coast refiners, said the partners.

Project operator Enbridge and partner LOOP have completed feasibility and engineering studies on the proposed Alligator pipeline, which will transport crude supplies from South America, West Africa, the Middle East, and the Gulf of Mexico.

After soliciting shipper interest, the Alligator partners expect to seek regulatory approvals and permits by yearend 1999.

An in-service date of late 2001 is envisioned.

Project design

Plans for the construction of the Alligator system include laying a 275-mile, 36-in. pipeline from the St. James, La., hub to Texas City, Tex., near Houston. The system will link crude oil supplies delivered to the Louisiana Offshore Oil Port (LOOP) with western Gulf Coast refiners. Construction of the new system is estimated to cost $400 million.

Alligator will have an initial capacity of 600,000 b/d of oil, with the capability to expand to 900,000 b/d. The western Gulf Coast has about 3.5 million b/d of refining capacity, the partners noted.

"(This project) extends our geographic reach and brings our 50 years of pipeline and terminaling experience to bear to ensure that growing volumes of offshore crude oil can be delivered to the western Gulf Coast refineries in a cost-effective manner," said Enbridge Pres. and CEO Brian F. MacNeill.

The Alligator project partners are building the line, the companies say, to cope with the saturation of eastern Gulf Coast markets and delivery systems. The proposed project will use existing LOOP marine terminal facilities, including a transfer station and oil port 20 miles south of Grand Isle, La., in 110 ft of water in the gulf.

From this port, a subsea pipeline transports oil to LOOP's eight underground salt caverns at Clovelly, La.

The caverns have a potential storage capacity of up to 45 million bbl of oil.

The caverns are connected to the St. James hub via pipeline.