Enbridge Delays Second Phase of Mainline Oil Pipeline Expansion

Canadian pipeline operator Enbridge announced Friday it is postponing the second phase of its Mainline crude pipeline expansion, a project intended to increase exports of Canadian crude oil to U.S. refineries.

The 250,000-barrel-per-day expansion, initially announced in November 2025 and slated for completion in 2027, faces delays as Canadian oil producers have not committed to substantial output increases. Enbridge CEO Greg Ebel indicated that the company will prioritize the Flanagan South Expansion and the Southern Access Extension projects first. These projects will add capacity to two secondary pipelines that link to the Mainline in Illinois, facilitating crude transport to various U.S. refining centers and the Gulf Coast.

Ebel noted that Canada has a significant opportunity to boost oil output, driven by recent federal government policy changes and the rollback of some environmental regulations. However, he pointed out that many proposed changes remain non-binding and have not yet been codified into law. Colin Gruending, Enbridge's president of liquids pipelines, stated that the company does not anticipate Canadian oil sands companies to meaningfully increase production until there is greater policy and regulatory certainty.

Gruending added that producers are unlikely to make binding final investment decisions for new pipelines until this certainty is established. A company spokesperson confirmed that prioritizing the secondary pipeline projects means a delay for the Mainline phase two, which Enbridge had previously projected could be operational by the end of 2028. The postponement underscores the industry's need for stable regulatory frameworks to support major infrastructure investments.

“

Nor do we expect producers ‌to be making binding FID-able commitments to new pipelines until then.