Enbridge Postpones Mainline Pipeline Expansion Amid Lack of Oil Producer Commitment

Canadian pipeline operator Enbridge has postponed the second phase of its Mainline crude oil export pipeline expansion. The project, which would have added 250,000 barrels per day to the existing capacity, is now on hold due to a lack of commitment from Canadian oil producers to increase output. Despite growing demand and expectations of further growth in production, Enbridge says it needs more policy and regulatory certainty before proceeding with the second phase.

Enbridge CEO Greg Ebel stated that the company will focus on smaller projects first, such as the Flanagan South Expansion and Southern Access Extension, which will add capacity to two secondary pipelines. These pipelines connect to the Mainline in Illinois and transport crude to multiple U.S. refining centers and the Gulf Coast.

Enbridge had previously projected the second phase could be in-service as early as 2028. However, the company now expects Canadian oil producers to boost production only after there is more policy and regulatory certainty. Enbridge's president of liquids pipelines, Colin Gruending, stated that the company may have been too quick to propose the Mainline phase two project.