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Enbridge will build oil and gas pipelines for a project in the US Gulf of Mexico

The Canadian company Enbridge has announced that it will build, own, and operate new crude oil and natural gas pipelines in the US Gulf of Mexico for the recently sanctioned Kaskida development, operated by BP.

The crude oil pipeline, named the Canyon Oil Pipeline System, will have a capacity of 200 kb/d. It will originate in the Keathley Canyon area in the US State of Louisiana. The natural gas pipeline, named the Canyon Gathering System, will have a capacity of 125 mcf/d (1.3 bcm/year) and will connect subsea to Enbridge's existing Magnolia Gas Gathering Pipeline.

Design and procurement activities will commence in early 2025 with the pipelines expected to be operational by 2029. The cost of the pipelines is expected at about US$700m.

BP had taken a final investment decision (FID) on the 80 kb/d Kaskida project in late July 2024, with production expected to start in 2029 as well.