Enbridge and Shell have announced separate initiatives to construct pipelines servicing BP‘s Kaskida oil project in the US GOM.
Canada-based Enbridge’s dual pipeline system will facilitate crude oil and natural gas transportation, while Shell’s Rome Pipeline will export oil from the Kaskida hub.
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Enbridge’s Canyon Oil Pipeline System, comprising 24in and 26in pipes, will carry up to 200,000 barrels per day (bpd)of crude from the Keathley Canyon area to Shell Pipeline Company’s Green Canyon 19 (GC-19) platform, with onward delivery to Louisiana markets.
The Canyon Gathering System, a 12in natural gas pipeline, will connect to Enbridge’s existing infrastructure, ultimately feeding into the Garden Banks Gas Pipeline.
Design and procurement for these pipelines are set to begin in early 2025, aiming for operational status by 2029, at an estimated cost of $700m.
Enbridge EVP and president of gas transmission and midstream Cynthia Hansen said: “We are extremely pleased to extend an existing relationship with bp and support their new deepwater development. This opportunity diversifies our Gulf of Mexico offshore business, strengthens our significant natural gas pipeline portfolio and enhances our ability to meet the strategic needs of our customers.
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By GlobalData“The Canyon Oil and Gas pipelines offer an attractive opportunity for Enbridge to serve customers in the Gulf of Mexico and further expand our US Gulf Coast footprint. The agreements generate stable and predictable cash flow and provide future growth opportunities.”
Meanwhile, Shell has announced the final investment decision for the Rome Pipeline, which is expected to enhance connectivity between the GC-19 pipeline hub and the Fourchon Junction facility on Louisiana’s coast.
Shell and bp America Production Company have agreed that the Rome Pipeline will handle all oil production from the Kaskida project.
Spanning approximately 160km, the Rome Pipeline will run alongside existing corridors, originating from Shell’s GC-19 platform, a nexus for deep-water fields with links to major crude markets in Texas and Louisiana.
The Kaskida project, launched in July, is bp’s sixth operational hub in the GOM.
The new platform is expected to extract up to 80,000bpd of crude from six wells in its initial phase, with operations commencing in 2029.
The Kaskida field, solely owned by bp, is believed to contain around 275 million barrels of oil equivalent recoverable resources from the first phase.
