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Engineering
November 9, 2009
Oil and gas
Enbridge building pipelines in Gulf of Mexico
Calgary-based Enbridge Inc. plans to expand operations into the transportation of oil in the Gulf of Mexico, with the construction of a $250-million pipeline.
“Traditionally, we have provided gas, but we are expanding our services in the ultra deepwater development in the Gulf of Mexico,” said Doug Kren, Enbridge president of offshore pipelines.
The company has entered into a partnership with Chevron USA, Inc., Statoil Gulf of Mexico LLC and Marubeni Oil & Gas (USA) Inc. to construct and operate an oil pipeline from the proposed Big Foot ultra deepwater development in the Gulf of Mexico.
“The Big Foot Oil Pipeline reinforces Enbridge’s presence as the leading pipeline services provider in the deepwater Gulf of Mexico region,” said Patrick D. Daniel, president and CEO, Enbridge Inc.
This proposed crude oil pipeline project complements Enbridge’s previously announced plans to construct the Walker Ridge Gathering System.
This project will provide natural gas transportation for the proposed Chevron-operated Jack, St. Malo and Big Foot fields.
“Big Foot will also involve exploration, development, wells and all related infrastructure,” said Kren.
“The floating production will bring all this together to produce gas and oil. In most associated reservoirs there is gas and oil, you can’t say you want gas and not oil.”
The Big Foot oil pipeline will consist of about 40 miles of 20-inch diameter pipe at depths of up to 5,900 feet, and will have capacity to transport up to 100,000 barrels per day.
Kren said that oil pipelines are larger in diameter and heavier than gas pipelines, so they will require a bigger lay barge for construction.
“We need to lay the pipeline and get out of the way for the producers to install the floating production facilities,” he explained. “The producers will pick up the pipeline from the ocean floor and make the final connection to the floating production facility.”
Big Foot will deliver to a sub-sea connection on existing deepwater pipeline infrastructure.
The Big Foot oil pipeline will be located about 170 miles south of the coast of Louisiana and it will cost about US$250 million.
Combined with the Walker Ridge Gathering System project, the proposed oil pipeline would bring the total Enbridge investment for the projects to US$750 million.
Kren said these two projects represent a significant increase in business for Enbridge because they have a capital asset value that is more than all of the company’s other assets in the Gulf of Mexico.
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