Enbridge Sanctions Pipelines to Support bp';s New Deepwater U.S. Gulf of Mexico Development
Enbridge announced plans to build, own, and operate crude oil and natural gas pipelines in the U.S. Gulf of Mexico for BP's Kaskida development. The Canyon Oil Pipeline System will use 24" and 26" pipes with a capacity of 200,000 barrels per day, transporting crude to Shell’s Green Canyon 19 platform and then to Louisiana. The Canyon Gathering System will be a 12" pipeline with a capacity of 125 million cubic feet per day, connecting to Enbridge’s Magnolia Gas Gathering Pipeline. Both projects, costing approximately $700 million, are backed by long-term contracts and offer options for future BP production connections. Design and procurement will start in early 2025, with operations expected by 2029. Enbridge highlights the diversification and strengthening of its Gulf of Mexico offshore business and significant natural gas pipeline portfolio.
Enbridge ha annunciato piani per costruire, possedere e gestire oleodotti e gasdotti nel Golfo del Messico degli Stati Uniti per lo sviluppo Kaskida di BP. Il Canyon Oil Pipeline System utilizzerà tubi da 24" e 26" con una capacità di 200.000 barili al giorno, trasportando il greggio verso la piattaforma Green Canyon 19 di Shell e poi verso la Louisiana. Il Canyon Gathering System sarà un oleodotto da 12" con una capacità di 125 milioni di piedi cubi al giorno, connesso all'oleodotto di raccolta del gas Magnolia di Enbridge. Entrambi i progetti, con un costo di circa 700 milioni di dollari, sono sostenuti da contratti a lungo termine e offrono opzioni per future connessioni alla produzione di BP. La progettazione e l'approvvigionamento inizieranno all'inizio del 2025, con operazioni previste entro il 2029. Enbridge evidenzia la diversificazione e il rafforzamento della propria attività offshore nel Golfo del Messico e un portafoglio significativo di gasdotti.
Enbridge anunció planes para construir, poseer y operar oleoductos y gasoductos en el Golfo de México de EE.UU. para el desarrollo Kaskida de BP. El Canyon Oil Pipeline System utilizará tuberías de 24" y 26" con una capacidad de 200,000 barriles por día, transportando crudo a la plataforma Green Canyon 19 de Shell y luego a Louisiana. El Canyon Gathering System será un oleoducto de 12" con una capacidad de 125 millones de pies cúbicos por día, conectándose al oleoducto de recolección de gas Magnolia de Enbridge. Ambos proyectos, que cuestan aproximadamente $700 millones, están respaldados por contratos a largo plazo y ofrecen opciones para futuras conexiones de producción de BP. El diseño y la adquisición comenzarán a principios de 2025, con operaciones previstas para 2029. Enbridge destaca la diversificación y el fortalecimiento de su negocio offshore en el Golfo de México y un importante portafolio de gasoductos.
엔브리지(Enbridge)는 미국 멕시코 만에서 BP의 카스키다(Kaskida) 개발을 위해 원유 및 천연가스 파이프라인을 건설하고 소유하며 운영할 계획을 발표했습니다. 캐니언 오일 파이프라인 시스템(Canyon Oil Pipeline System)은 24인치 및 26인치 파이프를 사용하여 하루 200,000배럴의 용량으로 원유를 쉘(Shell)의 그린 캐니언 19 플랫폼으로 운반한 후 루이지애나로 보내게 됩니다. 캐니언 가스터미널 시스템(Canyon Gathering System)은 하루 1억 2500만 입방피트의 용량을 가진 12인치 파이프라인으로, 엔브리지의 마그놀리아 가스 수집 파이프라인에 연결됩니다. 이 두 프로젝트는 약 7억 달러의 비용이 들며, 장기 계약에 기반하고 BP의 향후 생산 연결 옵션을 제공합니다. 설계 및 조달은 2025년 초에 시작되며, 운영은 2029년까지 시작될 것으로 예상됩니다. 엔브리지는 멕시코 만의 해양 사업의 다각화 및 강화와 중요한 천연가스 파이프라인 포트폴리오를 강조합니다.
Enbridge a annoncé des plans pour construire, posséder et exploiter des pipelines de pétrole brut et de gaz naturel dans le golfe du Mexique aux États-Unis pour le développement Kaskida de BP. Le Canyon Oil Pipeline System utilisera des tuyaux de 24" et 26" avec une capacité de 200 000 barils par jour, transportant le brut vers la plateforme Green Canyon 19 de Shell, puis vers la Louisiane. Le Canyon Gathering System sera un pipeline de 12" avec une capacité de 125 millions de pieds cubes par jour, se connectant au pipeline de collecte de gaz Magnolia d'Enbridge. Les deux projets, coûtant environ 700 millions de dollars, sont soutenus par des contrats à long terme et offrent des options pour les futures connexions de production BP. La conception et l'approvisionnement commenceront au début de 2025, avec des opérations prévues d'ici 2029. Enbridge met en avant la diversification et le renforcement de son activité offshore dans le golfe du Mexique ainsi qu'un portefeuille significatif de pipelines de gaz naturel.
Enbridge kündigte Pläne an, Rohöl- und Erdgas-Pipelines im Golf von Mexiko in den USA für die Kaskida-Entwicklung von BP zu bauen, zu besitzen und zu betreiben. Das Canyon Oil Pipeline System wird Rohre mit 24" und 26" Durchmesser nutzen und eine Kapazität von 200.000 Barrel pro Tag haben, wobei das Rohöl zur Green Canyon 19-Plattform von Shell und anschließend nach Louisiana transportiert wird. Das Canyon Gathering System wird eine 12" Pipeline mit einer Kapazität von 125 Millionen Kubikfuß pro Tag sein und mit der Magnolia Gas Gathering Pipeline von Enbridge verbunden werden. Beide Projekte, die etwa 700 Millionen US-Dollar kosten, werden durch langfristige Verträge unterstützt und bieten Optionen für zukünftige BP-Produktionsverbindungen. Entwurf und Beschaffung sollen Anfang 2025 beginnen, mit einem Betriebsstart bis 2029. Enbridge hebt die Diversifizierung und Stärkung seines Offshore-Geschäfts im Golf von Mexiko sowie sein erhebliches Portfolio an Erdgaspipelines hervor.
- Enbridge will build, own, and operate new pipelines in the U.S. Gulf of Mexico.
- The Canyon Oil Pipeline System will have a capacity of 200,000 barrels per day.
- The Canyon Gathering System will have a capacity of 125 million cubic feet per day.
- The projects are backed by long-term contracts, ensuring stable and predictable cash flow.
- The cost of the pipelines is approximately $700 million.
- Design and procurement activities will begin in early 2025, with operations by 2029.
- The pipeline projects will not be operational until 2029, implying a long wait for returns.
Insights
This announcement represents a significant expansion of Enbridge's offshore pipeline infrastructure in the Gulf of Mexico. The US$700 million investment in the Canyon Oil and Canyon Gas pipelines demonstrates Enbridge's commitment to growing its presence in this strategic region. The long-term contracts with bp align with Enbridge's low-risk business model, providing utility-like returns and stable cash flows.
The pipelines' design to accommodate connections from nearby discoveries positions Enbridge for potential future growth opportunities. With capacities of 200,000 barrels per day for oil and 125 million cubic feet per day for gas, these assets will play a important role in transporting resources from bp's Kaskida development and possibly other Paleogene projects.
For investors, this project represents a long-term value proposition, with operations expected to commence in 2029. The agreement's structure, including options for bp to connect future production, provides Enbridge with additional upside potential in the evolving deepwater Gulf of Mexico landscape.
The sanctioning of bp's Kaskida development and Enbridge's associated pipeline project signals continued investment in deepwater Gulf of Mexico resources. This commitment from major players like bp and Enbridge indicates confidence in the long-term viability of offshore oil and gas production, despite the ongoing energy transition.
The Canyon Oil and Gas pipelines will enhance the region's energy infrastructure, potentially unlocking further development opportunities in the Keathley Canyon area. The project's design flexibility to accommodate nearby discoveries could catalyze additional exploration and production activities in the Gulf.
For the broader oil and gas market, this development suggests that deepwater projects remain attractive, even in a challenging price environment. The long-term nature of these investments highlights the industry's view that Gulf of Mexico production will continue to play a significant role in meeting energy demand for decades to come.
The crude oil pipeline, named the Canyon Oil Pipeline System ("Canyon Oil"), will be a combination of 24" and 26" pipe with 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
The natural gas pipeline, named the Canyon Gathering System ("Canyon Gas"), will be a 12" pipeline with 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 downstream FERC-regulated Garden Banks Gas Pipeline.
The definitive agreements are underpinned by long-term contracts which are consistent with Enbridge's low-risk business model and provide utility-like returns. 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.
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
"We are extremely pleased to extend an existing relationship with bp and support their new deepwater development. This opportunity diversifies our Gulf of
About Enbridge Inc.
At Enbridge, we safely connect millions of people to the energy they rely on every day, fueling quality of life through our North American natural gas, oil and renewable power networks and our growing European offshore wind portfolio. We're investing in modern energy delivery infrastructure to sustain access to secure, affordable energy and building on more than a century of operating conventional energy infrastructure and two decades of experience in renewable power. We're advancing new technologies including hydrogen, renewable natural gas, carbon capture and storage. Headquartered in
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Forward-looking statements have been included in this news release to provide readers with information about Enbridge and its subsidiaries and affiliates, including management's assessment of Enbridge's and its subsidiaries' future plans and operations. This information may not be appropriate for other purposes. Forward-looking statements are typically identified by words such as ''anticipate'', ''expect'', ''project'', ''estimate'', ''forecast'', ''plan'', ''intend'', ''target'', ''believe'', "likely", and similar words suggesting future outcomes or statements regarding an outlook. Forward-looking information or statements included or incorporated by reference in this news release include, but are not limited to, statements with respect to the Canyon Oil Pipeline System and the Canyon Gathering System and related matters, including volumes and costs, future production, future growth opportunities, and other matters.
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