Enbridge Expands Gulf of Mexico Operations for BP's Kaskida Hub
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Enbridge Inc. ENB has announced plans to invest $700 million in the construction of crude oil and natural gas pipelines for the recently sanctioned Kaskida oil development in the U.S. Gulf of Mexico. This strategic move comes as part of ENB's ongoing efforts to strengthen its presence in the region, catering to rising global energy demands.
The Kaskida oil hub, operated by BP plc BP, marks the British oil major's sixth production hub in the Gulf of Mexico. Slated for a 2029 production start, Kaskida will feature a floating production platform with an initial capacity to produce 80,000 barrels per day from six wells. BP aims to increase its Gulf of Mexico production, targeting 400,000 barrels of oil and gas per day by 2030, up from its 2023 average of 300,000 barrels per day.
Enbridge’s crude oil pipeline, to be named the Canyon Oil Pipeline System, will have a capacity of 200,000 barrels per day, whereas its natural gas counterpart, the Canyon Gathering System, is designed to handle 125 million cubic feet per day. Both pipelines will connect subsea to Enbridge's existing Magnolia Gas Gathering Pipeline. Like the Kaskida development, the pipelines are expected to be fully operational by 2029.
Meanwhile, Shell plc SHEL has made its mark on the Kaskida project by greenlighting the construction of its Rome Pipeline, which will help transport oil produced from Kaskida. This pipeline will create an essential link between Shell's Green Canyon Block 19 pipeline hub and the Fourchon Junction facility on the Louisiana Gulf Coast. The Rome Pipeline is expected to be in operation by 2028, preceding the Kaskida hub’s first phase of production.
Enbridge's investment in the Gulf region is part of a broader strategy to expand its energy infrastructure. The company already plays a significant role in the U.S. Gulf Coast, supplying natural gas to five liquefied natural gas export terminals and owning the Ingleside Energy Center near Corpus Christi, TX, which is North America's largest crude export terminal.
BP’s commitment to the Kaskida hub underscores its long-term vision for the Gulf of Mexico, with Kaskida poised to become a significant contributor to BP’s offshore oil production portfolio. The addition of Enbridge’s new pipelines will help streamline the transportation of both oil and gas from this important offshore development, supporting BP’s broader energy ambitions in the region.
As global energy demand continues to rise, these projects highlight the strategic importance of the Gulf of Mexico in securing a steady supply of oil and natural gas, reinforcing the region’s role as a cornerstone of North America energy production.
