Canadian pipeline operator Enbridge on Friday approved a US$1.4 billion expansion of its Mainline and Flanagan South pipelines, used to transport Canadian heavy crude from the oil sands to the U.S. Midwest and Gulf Coast.
The project adds additional capacity and broadens access to American-based refineries, improving the flow of oil sands crude to major export outlets.
The investment comes as Enbridge attempts to balance liquids growth with its push into natural gas utilities and low-carbon fuels.
Enbridge said Mainline Optimization Phase 1 (MLO1) will add 150,000 barrels per day to its Mainline network and 100,000 bpd to the Flanagan South Pipeline (FSP), with the additional capacity expected to come online in 2027.
“MLO1 adds capital-efficient and timely egress from Canada, supporting production growth and improving connectivity to the best refining markets in North America,” said Colin Gruending, Enbridge’s president of liquids pipelines.
The company’s Mainline pipeline, which is capable of moving 3 million barrels per day of crude from Western Canada to Eastern Canada and the U.S. Midwest, shipped a record 3.1 million bpd on
average in the third quarter of 2025.
MLO1 will increase Mainline capacity through upstream optimizations and terminal upgrades, while Enbridge will also add pump stations and expand terminal capacity on its Flanagan South pipelines.
The expansion is supported by long-term take-or-pay contracts for the entire route from Edmonton to Houston.