Enbridge delays Mainline expansion, citing uncertainty over Canadian oil production

CALGARY — Enbridge has said it is postponing the 250,000-barrel-per-day second phase of its Mainline crude pipeline network in part due to Canadian oil producers not committing to significant output increases.The Calgary-based pipeline operator has now stated it will prioritize upgrades to its existing US pipeline infrastructure and will proceed with the 100,000-barrel-per-day Flanagan South Expansion and the 50,000-barrel-per-day Southern Access Extension, which will increase capacity on two pipelines connecting to the Mainline in Illinois and carrying Canadian crude to US refineries and the Gulf Coast..The news was confirmed by an Enbridge spokesperson, who said prioritizing the Flanagan South and Southern Access projects will delay the second phase of the Mainline expansion, which the company had previously targeted to enter service by the end of 2028.According to Reuters, CEO Greg Ebel said Canada has a generational opportunity to increase oil production following recent federal policy changes and the easing of some environmental regulations.Although the recent memorandum of understanding (MOU) on energy between Alberta and Ottawa and the pipeline proposal put forward by Premier Danielle Smith’s government to the Major Projects Office could have a dramatic impact, he cautioned that most of the proposed changes are non-binding and have not been enshrined into law.As a result, Enbridge isn’t expecting oil sands producers to significantly increase output until there is greater regulatory certainty.Colin Gruending, Enbridge's president of liquids pipelines, has said the company doesn’t expect “producers to be making binding FID-able commitments to new pipelines until then," referring to final investment decisions.

Enbridge delays Mainline expansion, citing uncertainty over Canadian oil production

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