A crude oil pipeline is coming to the Gulf of Mexico, courtesy of Enbridge Inc. The company announced yesterday that it will construct a pipeline connecting Hess Corporation’s Stampede development to a third-party pipeline system. Enbridge will retain ownership and operation of the pipeline, which is expected to be operational by 2018.
The new Stampede lateral pipeline will cost approximately $130 million and stretch 16 miles from the Green Canyon Block 468 to another deepwater pipeline. It will be approximately 3,500 feet below water. The pipeline’s proposed capacity was not disclosed.
Enbridge’s president of gas pipelines and processing, Greg Harper, said in the company’s press release, “The Stampede lateral is consistent with Enbridge’s low risk business model and furthers our objective to capture new deepwater Gulf of Mexico crude oil plays.”
The new line will add to Enbridge’s crude oil transportation capacity. Of the company’s assets in the Gulf of Mexico, 11 are for natural gas gathering and transmission. Enbridge’s portfolio only boasts one crude oil pipeline off the Gulf Coast. The company currently transports approximately 40 percent of all natural gas produced in the deepwater Gulf of Mexico projects as well as 45 percent of the natural gas coming from ultra-deep production projects.