Genesis Energy is planning to invest approximately $500m, over the next three years, to expand its existing pipeline system and build a new pipeline in the deepwater Gulf of Mexico.

The firm plans to expand the capacity of its Cameron Highway Oil Pipeline System (CHOPS) and construct a new 105-mile pipeline, known as SYNC, to connect one of its existing developments.

Go deeper with GlobalData

Data Insights

The gold standard of business intelligence.

Find out more

Related Company Profiles

View all

Extending along the Outer Continental Shelf (OCS) of the Gulf of Mexico, the 380-mile CHOPS pipeline delivers crude oil from major deepwater oil fields to markets on the Texas Gulf Coast.

In a press statement, Genesis said: “Both of these developments include life-of-lease dedications to our assets. Additionally, they both include long term take-or-pay arrangements that represent a less than five times build multiple on a combined basis, which multiple could be less than four times if the producers hit just 75% of their expected production profiles.”

The decision follows the signing of agreements by the company to transport the crude oil from two deepwater developments that have a combined production capacity of approximately 160,000 barrels of oil per day, Genesis Energy CEO Grant Sims said.

Production from the two deepwater developments is planned to start in late 2024 or 2025, Sims added.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

Sims was cited by Reuters as saying, during a conference call, that Genesis is also in early talks with undisclosed operators for the incremental production of nearly 150,000 barrels per day.

These operators would consider accessing a portion of capacity from the company’s new pipeline, effective from as early as 2024.

Genesis agreed to offload its idled offshore Independence Hub platform to an undisclosed firm for gross proceeds of $40m.