Enbridge Sanctions Pipelines to Support bp's New Deepwater U.S. Gulf of Mexico Development

PRNewswire 3-Oct-2024 7:00 AM

HOUSTON, Oct. 3, 2024 /PRNewswire/ - Enbridge Inc. (Enbridge) (TSX:ENB) (NYSE:ENB) announced today that it will build, own, and operate crude oil and natural gas pipelines in the U.S. Gulf of Mexico for the recently sanctioned Kaskida development, operated by BP Exploration & Production Company ("bp").

The crude oil pipeline, named the Canyon Oil Pipeline System ("Canyon Oil"), will be a combination of 24" and 26" pipe with capacity of 200,000 barrels per day. It will originate in the Keathley Canyon area and deliver crude to the existing Green Canyon 19 platform, operated by Shell Pipeline Company LP for ultimate delivery to the Louisiana market.

The natural gas pipeline, named the Canyon Gathering System ("Canyon Gas"), will be a 12" pipeline with capacity of 125 million cubic feet per day and will connect subsea to Enbridge's existing Magnolia Gas Gathering Pipeline, which then delivers to Enbridge's downstream FERC-regulated Garden Banks Gas Pipeline. 

The definitive agreements are underpinned by long-term contracts which are consistent with Enbridge's low-risk business model and provide utility-like returns. The agreements contain options which bp may elect to exercise in order to connect potential future production from its emerging Paleogene portfolio into the newly developed pipelines. Both the Canyon Oil and the Canyon Gas pipelines are being designed to accommodate connections from nearby discoveries.

Detailed design and procurement activities will commence in early 2025 with the pipelines expected to be operational by 2029. The cost of the pipelines will be approximately US$700 million.

"We are extremely pleased to extend an existing relationship with bp and support their new deepwater development. This opportunity diversifies our Gulf of Mexico offshore business, strengthens our significant natural gas pipeline portfolio, and enhances our ability to meet the strategic needs of our customers," said Cynthia Hansen, EVP & President Gas Transmission and Midstream. "The Canyon Oil and Gas pipelines offer an attractive opportunity for Enbridge to serve customers in the Gulf of Mexico and further expand our U.S. Gulf Coast footprint. The agreements generate stable and predictable cash flow and provide future growth opportunities."

About Enbridge Inc.

At Enbridge, we safely connect millions of people to the energy they rely on every day, fueling quality of life through our North American natural gas, oil and renewable power networks and our growing European offshore wind portfolio. We're investing in modern energy delivery infrastructure to sustain access to secure, affordable energy and building on more than a century of operating conventional energy infrastructure and two decades of experience in renewable power. We're advancing new technologies including hydrogen, renewable natural gas, carbon capture and storage. Headquartered in Calgary, Alberta, Enbridge's common shares trade under the symbol ENB on the Toronto (TSX) and New York (NYSE) stock exchanges. To learn more, visit us at enbridge.com.

Forward-Looking Statements

Forward-looking statements have been included in this news release to provide readers with information about Enbridge and its subsidiaries and affiliates, including management's assessment of Enbridge's and its subsidiaries' future plans and operations. This information may not be appropriate for other purposes. Forward-looking statements are typically identified by words such as ''anticipate'', ''expect'', ''project'', ''estimate'', ''forecast'', ''plan'', ''intend'', ''target'', ''believe'', "likely", and similar words suggesting future outcomes or statements regarding an outlook. Forward-looking information or statements included or incorporated by reference in this news release include, but are not limited to, statements with respect to the Canyon Oil Pipeline System and the Canyon Gathering System and related matters, including volumes and costs, future production, future growth opportunities, and other matters.

Although Enbridge believes these forward-looking statements are reasonable based on the information available on the date such statements are made and processes used to prepare the information, such statements are not guarantees of future performance and readers are cautioned against placing undue reliance on forward-looking statements. By their nature, these statements involve a variety of assumptions, known and unknown risks and uncertainties and other factors, which may cause actual results, levels of activity, and achievements to differ materially from those expressed or implied by such statements. Material assumptions include assumptions about the following: the expected supply of, demand for, export of, and prices of crude oil, natural gas, natural gas liquids ("NGL"), liquefied natural gas ("LNG"), and renewable energy; energy transition and lower carbon energy and our approach thereto, including the drivers and pace thereof; global economic growth and trade; anticipated utilization of our assets; exchange rates; inflation; interest rates; tax laws and tax rates; availability and price of labour and construction materials; the stability of our supply chain; operational reliability and performance; customer, regulatory, and stakeholder support and approvals; anticipated construction and in-service dates and final investment decisions; weather and seasonality; announced and potential acquisitions, dispositions, and other corporate transactions and projects, and the timing and terms, and the impact thereof; the realization of anticipated benefits of transactions; governmental legislation; litigation; impact of Enbridge's dividend policy on its future cash flows; Enbridge's credit ratings; hedging programs; expected financial performance; estimated future dividends; financial strength and flexibility; sources of liquidity and sufficiency of financial resources; debt and equity market conditions; general economic and competitive conditions; the ability of management to execute key priorities; and the effectiveness of various actions resulting from the Enbridge's strategic priorities. Assumptions regarding the expected supply of, and demand for, crude oil, natural gas, NGL, LNG, and renewable energy, and the prices of these commodities, are material to and underlie all forward-looking statements, as they may impact current and future levels of demand for Enbridge's services. Similarly, exchange rates, inflation, and interest rates impact the economies and business environments in which Enbridge operates and may impact levels of demand for Enbridge's services and cost of inputs and are therefore inherent in all forward-looking statements. Due to the interdependencies and correlation of these macroeconomic factors, the impact of any one assumption on a forward-looking statement cannot be determined with certainty, particularly with respect to expected financial performance and estimated future dividends.

Enbridge's forward-looking statements are subject to risks and uncertainties pertaining to the realization of anticipated benefits and synergies of projects and transactions, including the successful execution of our strategic priorities, operating performance, Enbridge's dividend policy, regulatory parameters, litigation, acquisitions and dispositions, and other transactions and the realization of anticipated benefits therefrom; operational dependence on third parties; project approval and support, renewals of rights-of-way, weather, economic and competitive conditions, global geopolitical conditions, political decisions, public opinion, changes in tax laws and tax rates, exchange rates, interest rates, inflation, commodity prices, and supply of, and demand for, commodities and other alternative energy, including, but not limited to, those risks and uncertainties discussed in this and in Enbridge's other filings with Canadian and U.S. securities regulators. The impact of any one assumption, risk, uncertainty, or factor on a particular forward-looking statement is not determinable with certainty as these are interdependent and Enbridge's future course of action depends on management's assessment of all information available at the relevant time.

Except to the extent required by applicable law, Enbridge assumes no obligation to publicly update or revise any forward-looking statements made in this news release or otherwise, whether as a result of new information, future events, or otherwise. All forward-looking statements, whether written or oral, attributable to Enbridge or persons acting on Enbridge's behalf, are expressly qualified in their entirety by these cautionary statements.

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SOURCE Enbridge Inc.