Content
Strategy
Offshore intends to grow through leveraging its existing asset position to attract new prospects including producer tie-backs as well as those requiring new laterals to be constructed by Offshore. A number of new discoveries exist in deepwater and the ultra-deep areas of the Gulf of Mexico in the corridors where Offshore has existing pipeline facilities. Offshore is continually monitoring and pursuing these prospects. Projects under construction are described below.
Neptune Pipelines Project
The Neptune natural gas lateral and crude oil lateral will connect the deepwater Neptune oil and gas field in the Green Canyon Corridor to existing Gulf of Mexico pipelines, extending Enbridge's existing Gulf of Mexico infrastructure. Except for the final subsea connections, construction of the US$0.1 billion 26-mile (42-kilometre), 20-inch diameter oil pipeline with capacity of 60,000 bpd and 26-mile (42-kilometre), 12-inch diameter gas pipeline, with capacity of 0.2 bcf/d, was completed in the fourth quarter of 2007. The Company started collecting standby fees in fourth quarter 2007 and production volumes are expected to commence in early 2008.
Shenzi Project
Enbridge has substantially completed constructing a natural gas lateral to connect the new deepwater Shenzi field to existing Gulf of Mexico pipelines. The US$45.0 million 11-mile (18-kilometre), 12-inch diameter gas pipeline has capacity of 0.1 bcf/d. In-service continues to be scheduled for mid-2009, concurrent with producer first volumes. The Shenzi lateral will deliver natural gas through the Company's 22% owned Cleopatra Pipeline, the 50% owned Manta Ray Pipeline and the 50% owned Nautilus Pipeline.
Atlantis and Thunder Horse Production Projects
Both of these significant third party owned projects, which will deliver natural gas into Offshore's gathering systems, have experienced startup delays due to the severe 2005 hurricanes. Atlantis, a significant source of new volumes, was placed into service in December 2007 and volumes will continue to ramp up into early 2008. The operator of the Thunder Horse project expects it to be in service in the fourth quarter of 2008.