Canadian energy firm Enbridge has secured a contract to build, own and operate a crude oil pipeline for the proposed Stampede development in the Gulf of Mexico.

Enbridge will construct a 25km pipeline, which will connect the Stampede development to an existing third-party pipeline system.

The lateral pipeline, which is expected to cost around $130m, will commence operations in 2018.

"Enbridge’s offshore pipelines transport around 40% of the natural gas produced in the deepwater Gulf of Mexico."

The planned pipeline will be located in a water depth of approximately 3,500ft and will originate in Green Canyon Block 468, 220 miles south-west of New Orleans, Louisiana, US.

Enbridge gas pipelines and processing president Greg Harper said: "The Stampede lateral is consistent with Enbridge’s low-risk business model and furthers our objective to capture new deepwater Gulf of Mexico crude oil plays."

Enbridge’s offshore pipelines transport around 40% of the natural gas produced in the deepwater Gulf of Mexico and 45% of ultra-deep natural gas production.

Chevron subsidiary Union Oil Company of California has a 25% working interest in the Stampede development, while Hess, Statoil and Nexen, each have 25% stakes.

The Stampede field has estimated recoverable resources of more than 300 million barrels of oil equivalent.

Production from the project is expected to be approximately 80,000 barrels of crude oil per day.

Hess will operate the Stampede project, which includes the joint development of the Knotty Head and Pony discoveries in Green Canyon blocks 511, 512 and 468.