Enbridge is pushing ahead with a major expansion of its continental oil network, announcing a final decision to spend US$1.4 billion on a project it claims will boost Canadian egress and strengthen North American energy security.The Calgary-based pipeline giant said Thursday its Mainline Optimization Phase 1 project (MLO1) will increase capacity on both its Mainline network and the Flanagan South Pipeline (FSP), allowing more Canadian heavy crude to move into U.S. Midwest and Gulf Coast refineries.The project will add 150,000 barrels per day (kbpd) of new space on the Mainline and another 100 kbpd on FSP, with the additional capacity expected to come online in 2027.Colin Gruending, Enbridge’s executive vice president and president of liquids pipelines, said the expansion shows how the company can squeeze new capacity out of existing infrastructure rather than building new pipelines from scratch..“MLO1 is expected to add capital-efficient and timely egress capacity from Canada, supporting Canadian production and increasing connectivity to the best refining markets in North America,” Gruending said. “This project demonstrates the competitive advantage of leveraging existing networks to meet growing customer demand, supporting long-term energy security and affordability across North America.”The Mainline upgrades will rely on upstream system optimizations and enhancements at key terminals. Enbridge will also add pump stations and make terminal improvements along FSP, while tapping into unused capacity on the Seaway Pipeline.Enbridge said the FSP expansion is backed by long-term take-or-pay contracts covering full-path service from Edmonton to Houston. The commitment from shippers—including the decision by most to extend their existing contracts into the next decade—provides the financial support Enbridge says it needs to justify MLO1.The Mainline, already the largest crude pipeline system on the continent, remains the backbone of Canada’s oil exports. By increasing throughput without constructing new cross-border pipe, Enbridge is betting regulators and investors will view the project as lower-risk and more economically efficient..The company framed the move as a win for producers struggling with intermittent bottlenecks and for U.S. refiners who prefer Canadian heavy oil as a substitute for declining Venezuelan and Mexican supplies.If the project proceeds on schedule, Enbridge will deliver another 250,000 barrels per day of Canadian crude into the U.S. refining complex — an expansion certain to spark debate among environmental groups but welcomed by industry watchers who argue Canada’s landlocked producers still face chronic takeaway challenges.Enbridge maintains the additional capacity will help stabilize prices, improve reliability for shippers and strengthen what it calls the continent’s “long-term energy security.”
