Enbridge Inc. is constructing new oil and gasoline pipelines for BP Exploration & Manufacturing Firm’s just lately sanctioned Kaskida growth within the U.S. Gulf of Mexico (GOM).
Enbridge stated in a information launch it plans to construct, personal, and function crude oil and pure gasoline pipelines in Kaskida, BP’s sixth hub within the GOM.
The crude oil pipeline, named the Canyon Oil Pipeline System, will likely be a mixture of 24″ and 26″ pipe with a capability of 200,000 barrels per day (bpd). It is going to originate within the Keathley Canyon space and ship crude to the present Inexperienced Canyon 19 platform, operated by Shell Pipeline Firm LP for final supply to the Louisiana market, in line with the discharge.
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The pure gasoline pipeline, named the Canyon Gathering System, will likely be a 12″ pipeline with capability of 125 million cubic ft per day and can join subsea to Enbridge’s present Magnolia Gasoline Gathering Pipeline, which then delivers to Enbridge’s downstream FERC-regulated Backyard Banks Gasoline Pipeline.
The definitive agreements are underpinned by long-term contracts “that are in step with Enbridge’s low-risk enterprise mannequin and supply utility-like returns,” the corporate stated.
Additional, the agreements include choices that BP could train to attach potential future manufacturing from its rising Paleogene portfolio to the newly developed pipelines. Each the Canyon Oil and the Canyon Gasoline pipelines are being designed to accommodate connections from close by discoveries, Enbridge famous.
Detailed design and procurement actions will start in early 2025, with the pipelines anticipated to be operational by 2029. The price of the pipelines will likely be roughly $700 million, in line with Enbridge.
“We’re extraordinarily happy to increase an present relationship with BP and help their new deepwater growth. This chance diversifies our Gulf of Mexico offshore enterprise, strengthens our vital pure gasoline pipeline portfolio, and enhances our capability to fulfill the strategic wants of our prospects,” Cynthia Hansen, Enbridge EVP and President for Gasoline Transmission and Midstream, stated. “The Canyon Oil and Gasoline pipelines supply a beautiful alternative for Enbridge to serve prospects within the Gulf of Mexico and additional develop our U.S. Gulf Coast footprint. The agreements generate steady and predictable money move and supply future development alternatives”.
Kaskida may have a brand new floating manufacturing platform with the capability to supply 80,000 barrels of crude oil per day from six wells in its first section. Manufacturing is anticipated to start out in 2029, BP stated in an earlier information launch. The corporate made an FID on the asset in July.
BP’s 100-percent-owned Kaskida subject found recoverable sources at the moment estimated at round 275 million barrels of oil equal from the preliminary section. Extra wells may very well be drilled in future phases, topic to additional analysis. Situated within the Keathley Canyon space about 250 miles southwest off the coast of New Orleans, the Kaskida mission unlocks the potential future growth of 10 billion barrels of found sources in place throughout the Kaskida and Tiber catchment areas, in line with the discharge, BP stated.
BP famous that Kaskida is in “a major location,” with a steady fiscal regime and entry to the market. The mission will likely be its first growth within the GOM to supply from reservoirs that may require properly gear with a strain ranking of as much as 20,000 kilos per sq. inch (20K). Developments in 20K drilling know-how, coupled with up to date seismic imaging, allow the corporate to securely develop the sphere and to progress plans to develop different fields reminiscent of Tiber, which is anticipated to advance to a last funding resolution subsequent yr, it stated.
To contact the writer, e mail rocky.teodoro@rigzone.com
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