Project Profile
Location: Gulf of Mexico
Capacity: 120,000 bpd
Length: 153 miles
Start-up Year: 2012
CorEnergy has entered into a definitive agreement to acquire 100% of the Grand Isle Gathering System (GIGS), a subsea, midstream pipeline system with related onshore facilities serving oil-producing fields in the shallow portion of the Gulf of Mexico. CorEnergy has agreed to acquire the GIGS from Energy XXI for US$245 million in cash. The GIGS includes 153 miles of undersea pipeline that transports oil and water from six Energy XXI fields and one field operated by ExxonMobil.
The 16-acre terminal includes four storage tanks, a saltwater disposal facility with three injection wells, and associated pipelines, land, buildings and facilities. The GIGS system currently transports approximately 60,000 bpd (18,000 oil and 42,000 water) with total capacity of 120,000 bpd. GIGS volumes represented approximately 42%. Furthermore, EXXI will continue to operate the GIGS system under a long-term, triple-net lease with CorEnergy. The primary term of the lease will be 11 years from closing, with an initial renewal term of nine years, subject to certain conditions.
Operators:
CorEnergy Infrasturcture: 100% interest