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Enbridge Selected to Provide Crude Oil Pipeline for Deepwater Gulf of Mexico

Source: www.gulfoilandgas.com 1/12/2015, Location: North America

Enbridge Inc. will build, own and operate a crude oil pipeline in the Gulf of Mexico to connect the planned Stampede development, operated by Hess Corporation, to an existing third-party pipeline system. The lateral pipeline is expected to cost approximately $0.13 billion and be operational in 2018. The Stampede development was previously sanctioned by Hess and its project co-owners in October 2014.

Approximately 16 miles in length and 18 inches in diameter, the Stampede lateral will originate in Green Canyon Block 468, located approximately 220 miles southwest of New Orleans, Louisiana. Water depth at the location of the planned pipeline is approximately 3,500 feet.

"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," said Greg Harper, president, Gas Pipelines & Processing, Enbridge Inc. "This project is an attractive investment opportunity for Enbridge and we are pleased to be working with Hess and the other producers on this development."

Enbridge's offshore pipelines transport approximately 40 percent of the natural gas produced in the deepwater Gulf of Mexico, and 45 percent of ultra-deep natural gas production. The company's offshore assets include interests in 11 natural gas gathering and transmission pipelines and one crude oil pipeline in four major pipeline corridors off the coasts of Louisiana and Mississippi.

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