North American energy giant Enbridge Inc. announced last Thursday it will invest approximately $700 million in the construction of new crude oil and natural gas pipelines in the U.S. Gulf of Mexico to support BP’s Kaskida development.

Known as the Canyon Oil Pipeline System, the new pipeline project will have an estimated capacity of 200,000 barrels per day, transporting crude oil from the Keathley Canyon area to the Green Canyon 19 platform operated by Shell Pipeline Co. LP. 

The Canyon Gathering System will have a capacity of 125 million cubic feet per day, connecting to Enbridge’s existing Magnolia Gas Gathering Pipeline, with both pipelines expected to be operational by 2029. Detailed design and procurement activities beginning early next year.

Enbridge has been actively expanding its presence in the Gulf Coast region, aiming to meet growing global energy demand. The company already supplies natural gas to five LNG export terminals and owns the largest crude export terminal in North America.

Meanwhile, BP approved the development of Kaskida in July. This sixth hub in the Gulf of Mexico will feature a floating production platform capable of producing 80,000 barrels of oil per day. Production is anticipated to commence in 2029.