Enbridge sanctions pipelines to support bp Kaskida development in Gulf of Mexico

Enbridge Inc. will build, own, and operate crude oil and natural gas pipelines in the US Gulf of Mexico for the sanctioned BP Exploration & Production Co. (bp) Kaskida development (OGJ Online, July 31, 2024).

Enbridge's proposed crude oil pipeline, the Canyon Oil Pipeline System, will be a combination of 24-in. OD and 26-in. OD pipe with capacity of 200,000 b/d. It will originate in the Keathley Canyon area and deliver crude to the existing Shell Pipeline Co. LP-operated Green Canyon 19 hub platform (GC-19).

The news was released Oct. 3, the same day Shell Pipeline Co. LP noted its final investment decision to proceed with the Rome Pipeline, which is designed to increase access between GC-19 and the Fourchon Junction terminal on the Louisiana Gulf Coast (OGJ Online, Oct. 3, 2024). 

Enbridge's natural gas pipeline, the Canyon Gathering System, will be a 12-in. OD pipeline with capacity of 125 MMcfd and will connect subsea to Enbridge's existing Magnolia Gas Gathering Pipeline, which then delivers to Enbridge's downstream FERC-regulated Garden Banks Gas Pipeline.

The agreements are underpinned by long-term contracts, which contain options bp may exercise to connect potential future production from its Paleogene portfolio. Both pipelines are being designed to accommodate connections from nearby discoveries, Enbridge said.

Detailed design and procurement activities will begin in early 2025 with the pipelines expected to be operational by 2029. The cost of the pipelines will be about $700 million.