Enbridge Approves $1.4 Billion Pipeline Expansion to Boost Canadian Crude Exports

Canadian pipeline giant Enbridge has approved a $1.4 billion expansion of its Mainline and Flanagan South pipelines, significantly increasing the flow of Canadian heavy crude to the U.S. Midwest and Gulf Coast. The project, known as Mainline Optimization Phase 1 (MLO1), is designed to strengthen U.S. refinery access and improve the movement of oil sands to major export markets, aligning with the company’s strategy to balance liquids growth with investments in natural gas utilities and low-carbon fuels.

MLO1 will add 150,000 barrels per day (bpd) to Enbridge’s Mainline network and an additional 100,000 bpd to the Flanagan South Pipeline, with operations expected to begin in 2027. According to Colin Gruending, Enbridge’s president of liquids pipelines, the expansion will provide “capital-efficient and timely egress from Canada,” supporting anticipated production increases while enhancing connectivity to key North American refining hubs. The Mainline system, already capable of transporting 3 million bpd from Western Canada, averaged a record 3.1 million bpd in the third quarter.

The project will boost capacity through upstream optimizations, terminal upgrades, new pump stations, and expanded facilities along the route. Backed by long-term take-or-pay contracts from Edmonton to Houston, the expansion offers stable revenue certainty for Enbridge. Reporting was contributed by Pooja Menon and Arunima Kumar, with editing by Vijay Kishore.

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