Enbridge to build new oil and natural gas pipelines in Gulf of Mexico

The natural gas pipeline, named the Canyon Gathering System, will have a capacity of 125 million cubic feet per day.

Enbridge Inc. says it will spend about $700 million US to build new crude oil and natural gas pipelines in the U.S. Gulf of Mexico for the Kaskida development, operated by BP Exploration & Production Co.

The crude oil pipeline, named the Canyon Oil Pipeline System, will have a capacity of 200,000 barrels per day and originate in the Keathley Canyon area of the gulf.

The natural gas pipeline, named the Canyon Gathering System, will have a capacity of 125 million cubic feet per day.

It will connect to Enbridge's existing Magnolia Gas Gathering Pipeline.

The company says that detailed design and procurement activities are expected to start early next year with the pipelines expected to be operational by 2029.