Enbridge Green Lights $700 Million Pipeline Network Plans for Gulf of Mexico

Enbridge will construct and operate crude oil and natural gas pipelines for BP's Kaskida oil hub in the U.S. Gulf of Mexico, set to start production in 2029. Shell has also announced its final investment decision for the Rome Pipeline, which will transport oil from the project.

(Reuters) — Canada's Enbridge said on Thursday it would build and operate crude oil and natural gas pipelines in the U.S. Gulf of Mexico for the recently sanctioned Kaskida oil hub, operated by British oil major BP.

Separately, Shell announced the final investment decision for its Rome Pipeline, which would export the oil produced from the Kaskida project.

BP's sixth operating hub, Kaskida, has oil production slated to start in 2029 and features a new floating production platform with a capacity to produce 80,000 barrels per day from six wells in the first phase.

The company's U.S. Gulf of Mexico output averaged 300,000 barrels of oil and gas per day in 2023, with the company targeting 400,000 bpd by 2030.

Enbridge's crude oil pipeline would be called the Canyon Oil Pipeline System, with a capacity of 200,000 bpd.

Its natural gas pipeline would be named Canyon Gathering System with a capacity of 125 million cubic feet per day and would connect subsea to Enbridge's offshore existing Magnolia Gas Gathering Pipeline.

The pipelines are expected to be operational by 2029 and would cost $700 million, the Canadian firm said.

Shell's Rome Pipeline, projected to begin operations in 2028, would increase access between the company's Green Canyon Block 19 pipeline hub and the Fourchon Junction facility on the Louisiana Gulf Coast.