Shell strengthens its pipeline capacity in the Gulf of Mexico

Shell Pipeline Company LP announces the Rome Pipeline project, increasing oil transport capacity and consolidating its strategic position in the Gulf of Mexico.

Share:

Comprehensive energy news coverage, updated nonstop

Annual subscription

8.25$/month*

*billed annually at 99$/year for the first year then 149,00$/year ​

Unlimited access • Archives included • Professional invoice

OTHER ACCESS OPTIONS

Monthly subscription

Unlimited access • Archives included

5.2$/month*
then 14.90$ per month thereafter

FREE ACCOUNT

3 articles offered per month

FREE

*Prices are excluding VAT, which may vary depending on your location or professional status

Since 2021: 35,000 articles • 150+ analyses per week

Shell Pipeline Company LP (“Shell”) announced today its final investment decision (FID) for the Rome Pipeline project, an offshore pipeline intended to improve access between Shell’s Green Canyon Block 19 (“GC-19”) pipeline hub platform and the Fourchon Junction facility on the Louisiana Gulf Coast. This project aims to strengthen Shell’s presence in the Gulf of Mexico (GoM) by increasing oil transport capacity, thereby supporting national oil production in the western and central areas of the GoM.

This new addition to Shell’s pipeline network will allow for increased flexibility and efficiency in oil transport, consolidating the company’s strategic position in the region. Andrew Smith, Executive Vice President of Shell for Trading and Supply, stated: “This investment will reinforce Shell’s strategic position in the American Gulf of Mexico through enhanced oil transport capacity, increased flexibility, and better efficiency.”

Partnership with BP America Production Company

In parallel with this announcement, Shell and BP America Production Company (“bp”) have entered into an agreement for the Rome Pipeline to export 100 % of the oil production from bp’s recently authorized Kaskida project in the Keathley Canyon area. This strategic collaboration allows for optimizing the use of existing infrastructure and maximizing oil transport efficiency in the region.

The Rome Pipeline will extend approximately 100 miles and follow an existing pipeline corridor. It will originate from Shell’s GC-19 pipeline hub platform, which serves as a destination for several deep-water fields in the GoM due to its connections with most major crude oil markets in Texas and Louisiana. This infrastructure is essential to support the continued expansion of oil production in the region.

Shell’s Expertise and Safety

Shell relies on its vast experience in constructing and safely operating pipelines, including nearly 3 000 miles of pipelines in Louisiana and in the GoM waters off the Louisiana coast. The Rome Pipeline will benefit from this extensive expertise and Shell’s unwavering commitment to safety, thereby ensuring reliable and secure operations.

Shell’s strict safety protocols will be applied throughout the construction and operation of the Rome Pipeline. The company continually invests in advanced technologies to minimize environmental risks and ensure the protection of marine ecosystems in the Gulf of Mexico. Additionally, regular audits and specific training will be implemented for personnel involved in the project.

Operational Outlook

Pending necessary permitting and regulatory agency approvals, the Rome Pipeline is expected to begin operations in 2028. This ambitious timeline reflects Shell’s determination to develop robust energy infrastructure and support national oil production in a sustainable and efficient manner.

The start of the Rome Pipeline will also help reduce existing bottlenecks in the Gulf of Mexico’s oil transport network, thereby facilitating a smoother and faster distribution to key markets. Shell expects this project to significantly contribute to the stability and growth of the American energy sector while adhering to the strictest environmental standards.

This project represents an important step in Shell’s strategy to strengthen its energy infrastructure in the Gulf of Mexico, while closely collaborating with key partners like BP America Production Company to maximize oil transport efficiency and safety.

The US Treasury Department has imposed sanctions on more than 50 entities linked to Iranian oil exports, targeting Chinese refineries and vessels registered in Asia and Africa.
Khartoum et Juba annoncent un mécanisme commun pour protéger les oléoducs transfrontaliers, sans clarifier le rôle des forces armées non étatiques qui contrôlent une partie des installations.
The Namibian government signed an agreement with McDermott to strengthen local skills in offshore engineering and operations, aiming to increase oil sector local content to 15% by 2030.
Nigeria deploys a 2.2 million-barrel floating storage unit funded by public investment, strengthening sovereignty over oil exports and reducing losses from theft and infrastructure failures.
Despite open statements of dialogue, the federal government maintains an ambiguous regulatory framework that hinders interprovincial oil projects, leaving the industry in doubt.
Canada’s Sintana Energy acquires Challenger Energy in a $61mn all-share deal, targeting offshore exploration in Namibia and Uruguay. The move highlights growing consolidation among independent oil exploration firms.
The 120,000-barrel-per-day catalytic cracking unit at the Beaumont site resumed operations after an unexpected shutdown caused by a technical incident earlier in the week.
An agreement was reached between Khartoum and Juba to protect key oil installations, as ongoing armed conflict continues to threaten crude flows vital to both economies.
Alnaft has signed two study agreements with Omani firm Petrogas E&P on the Touggourt and Berkine basins, aiming to update hydrocarbon potential in key oil-producing areas.
Import quotas exhaustion and falling demand push Chinese independent refineries to sharply reduce Iranian crude volumes, affecting supply levels and putting downward pressure on prices.
Serbian oil company NIS, partially owned by Gazprom, faces newly enforced US sanctions after a nine-month reprieve, testing the country's fuel supply chain.
US-based Chevron appoints Kevin McLachlan, a veteran of TotalEnergies, as its global head of exploration, in a strategic move targeting Nigeria, Angola and Namibia.
Lycos Energy finalises the sale of its Alberta assets for $60mn, planning an immediate $47.9mn cash distribution to shareholders and the launch of a share buyback programme.
Russian oil output moved closer to its OPEC+ allocation in September, with a steady rise confirmed by Deputy Prime Minister Alexander Novak.
Fuel shortages now affect Bamako, struck in turn by a jihadist blockade targeting petroleum flows from Ivorian and Senegalese ports, severely disrupting national logistics.
McDermott has signed a memorandum of understanding with PETROFUND to launch technical training programmes aimed at strengthening local skills in Namibia’s oil and gas sector.
The example of OML 17 highlights the success of an African-led oil production model based on local accountability, strengthening Nigeria’s position in public energy investment.
ExxonMobil has signed a memorandum of understanding with the Iraqi government to develop the Majnoon oil field, marking its return to the country after a two-year absence.
Crude prices rose following the decision by the Organization of the Petroleum Exporting Countries and its allies to increase production only marginally in November, despite ongoing signs of oversupply.
Cenovus Energy modifies terms of its acquisition of MEG Energy by increasing the offer value and adjusting the cash-share split, while reporting record third-quarter results.

All the latest energy news, all the time

Annual subscription

8.25$/month*

*billed annually at 99$/year for the first year then 149,00$/year ​

Unlimited access - Archives included - Pro invoice

Monthly subscription

Unlimited access • Archives included

5.2$/month*
then 14.90$ per month thereafter

*Prices shown are exclusive of VAT, which may vary according to your location or professional status.

Since 2021: 30,000 articles - +150 analyses/week.