Enbridge to Build New Oil and Gas Pipelines for BP’s GOM Project

SEATTLE (Oil Monster): In a press release, Enbridge Inc. stated that it plans to construct, own, and run natural gas and crude oil pipelines in the recently approved Kaskida development by BP in the United States Gulf of Mexico (GOM). The Keathley Canyon region is the starting point of the proposed Canyon Oil Pipeline System, which would transport crude to the Green Canyon 19 platform before arriving at the Louisiana market.

The proposed natural gas pipeline will have a capacity of 125 million cubic feet per day, connecting subsea to Enbridge's existing Magnolia Gas Gathering Pipeline. As per the agreement, BP may use its option to link the newly constructed pipelines to prospective future production from its developing Paleogene portfolio.

The company stated that the detailed design and procurement activities are expected to commence early next year. The pipelines are projected to become operational by 2029. Their estimated cost is $700 million, according to the press statement.

Commenting on the development, Cynthia Hansen, EVP and President for Gas Transmission and Midstream at Enbridge noted that the business is glad to extend its current relationship with BP and provide support to their new deepwater development project. Hansen continued, "The new agreement gives the company an opportunity to diversify its offshore business in the Gulf of Mexico."