Enbridge to build Gulf of Mexico pipeline

Nov. 7, 2012 at 6:04 AM

HOUSTON, Nov. 7 (UPI) -- Canadian pipeline company Enbridge said it secured a deal to build and operate a 34-mile crude oil pipeline in the deep waters of the Gulf of Mexico.

Enbridge said the pipeline would tie into the proposed Heidelberg development. That project starts at the Green Canyon block about 200 miles southwest of New Orleans in 5,300 feet of water.

Enbridge Gas Pipelines President Leon Zupan said the project represents an attractive investment opportunity for his company.

"It also furthers our objective of diversifying our offshore business to include facilities that support the substantial crude oil discoveries in the deep water of the U.S. gulf coast," he said in a statement.

Enbridge didn't offer financial details for the project, though its offshore pipelines transport around 40 percent of the natural gas produced in the Gulf of Mexico currently.

Italian energy company Eni, in April, said estimated recoverable reserves in the Heidelberg development could reach 200 million barrels of oil. Anadarko Petroleum Corp. serves as the operator of the project.

Enbridge said the pipeline is expected to be in service by 2016.

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