Enbridge to spend $700 million building new oil and natural gas pipelines in Gulf of Mexico

Pipelines will have capacity to move 200,000 barrels of oil and 125 million cubic feet of natural gas a day

Enbridge Inc. says it will spend about US$700 million to build new crude oil and natural gas pipelines in the U.S. Gulf of Mexico for the Kaskida development. Photo by JOHN WOODS /THE CANADIAN PRESS

The crude oil pipeline, named the Canyon Oil Pipeline System, will have a capacity of 200,000 barrels per day and originate in the Keathley Canyon area of the gulf.

It will deliver crude to the existing Green Canyon 19 platform, operated by Shell Pipeline Co. LP for ultimate delivery to the Louisiana market.

It will connect to Enbridge’s existing Magnolia Gas Gathering Pipeline.

The company says detailed design and procurement activities are expected to start early next year with the pipelines expected to be operational by 2029.

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