Canadian pipeline operator Enbridge said on Friday it was postponing the 250,000-barrel-per-day second phase of its Mainline crude pipeline network, partly due to Canadian oil producers not committing to significant output increases.
The project, announced in Nov. 2025, would have increased exports of Canadian crude to U.S. refineries and would be completed in 2027.
But Enbridge CEO Greg Ebel said the company will focus first on its 100,000 bpd Flanagan South Expansion and its 50,000 bpd Southern Access Extension, which will add capacity to two secondary pipelines that connect to the Mainline in Illinois and transport crude to multiple U.S. refining centers and the Gulf Coast.
Ebel said Canada is facing a generational opportunity to expand its oil output, thanks to recent federal government policy changes and the rollback of some environmental rules.
But he said while a recent agreement between the federal government and Alberta aimed at accelerating oil sands growth could have a dramatic impact, most of the proposed changes remain non-binding and have not been enshrined into law.
Enbridge does not expect Canadian oil sands companies to meaningfully boost production until there is more policy and regulatory certainty, said Colin Gruending, the company’s president of liquids pipelines.
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“Nor do we expect producers to be making binding FID-able commitments to new pipelines until then,” Gruending said, referring to final investment decisions.
A company spokesperson confirmed the decision to prioritize the secondary pipeline projects means a delay for the Mainline phase two project, which Enbridge had previously said could be in service by the end of 2028.
With files from Global News.
Increasing output and creating pipeline capacity is a chicken and egg situation complicated by the years needed to do either one. Pipeline must remain near capacity to be assets and the price of oil must remain high for a decade or more to justify investment in new capacity. Wprse. tje decisions (such as the mainline expansion) happened long before the trade war or iran war. Best to be cautious.
How is it possible that a government can tell people who elected them what to do , these Liberal assholes work for the public , you would think by the politicians actions it was the other way around .
Obviously an effort by a cruel Ottawa to keep Albertabamans down. An independent Alberta will pump infinite amounts of oil over the border into the US whether anyone is willing to build them yet another pipeline for it, or kind-hearted US regulators allow one to be built. We’ll all be rich, I tell you, rich!
Whats that, Carney hasnt done anything meaningful to give Canadian O&G operators faith to increase their output? Say it a little louder for the people in the back…
Don’t give the US any oil, make them beg like they should.
There is a reason we’re on top on the map.
Don’t like it, leave my country, you’re not welcome here.
Any company would be idiots to invest in Canada. Look at how many projects were planned ready to start and some environmentalists, indigenous group or other special interest group has shut the project down.