Enbridge and Chevron eye deepwater gas system

Aug 01, 2009 02:00 AM

Enbridge has signed letters of intent with Chevron USA to construct, own, and operate the Walker Ridge Gathering System (WRGS), providing natural gas gathering services to Chevron's potential Jack, St Malo, and Big Foot ultra deepwater Gulf of Mexico developments.
WRGS would tie production from the Chevron fields into Enbridge's Manta Ray and Nautilus offshore pipeline systems and position the company for future growth in the ultradeep Gulf of Mexico, Enbridge said. Resource-quality gas-hydrate deposits were found in the Walker Ridge area in May 2009.

The system would include about 190 miles of 8-inch, 10-inch, and 12-inch OD pipeline at depths of up to 7,000 ft, transporting 100 mm cfpd. Enbridge estimates WRGS's cost at $ 500 mm, subject to finalization of scope and definitive cost estimates.
Enbridge's current offshore pipelines include the UTOS, Stingray, Garden Banks, Nautilus, Manta Ray, Mississippi Canyon, Okeanos, and Destin systems, transporting 2.5 bn cfpd of Gulf of Mexico gas.

Chevron initiated front-end engineering and design in March 2009 of a hub to develop Jack and St Malo fields. The production facility would have capacity of 120,000-150,000 boepd.
Chevron estimates combined recoverable liquids reserves of the two fields at more than 500 mm bbl.