Enbridge Sees Surge in Canadian Crude Re-Exports with Pipeline Projects

Canadian crude re-exports from the Gulf Coast are set to surge in the coming decade due to pipeline projects, according to Enbridge's head of crude oil pipeline division. Colin Gruending said that while the opening of Canada's Trans Mountain pipeline in 2024 redirected a significant share of Canada's export-bound crude oil towards British Columbia's Pacific coast, Enbridge's planned expansion of its Mainline pipeline network will send some of this new capacity through the Gulf to international markets.

The company believes India and many African nations could meet their demand for oil by buying re-exported Canadian crude. Currently, between 200,000 and 400,000 barrels per day of Canadian crude is re-exported off the Gulf Coast, but forecasts assume this will grow.

Enbridge's expansion plans include adding 250,000 bpd of capacity to its Mainline and Flanagan South pipelines by 2027. The company is also gauging commercial interest for a second phase of its Mainline expansion, which could add another 250,000 bpd of capacity in 2028.

In addition, Enbridge's competitor South Bow is proposing to partner with U.S. pipeline company Bridger Pipeline to revive parts of the cancelled Keystone XL pipeline, which would increase Canada's current oil exports to the U.S. by over 12% if it goes ahead.