Enbridge postpones $250M pipeline expansion as oil sands producers hesitate
Canada's second-largest pipeline operator defers its Mainline phase-two project, citing lack of producer commitment until federal policy and regulatory certainty improves.
Sources · local media reports
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Enbridge is postponing the second phase of its Mainline crude pipeline expansion, which would have added 250,000 barrels per day of capacity, the company said Friday.
The decision comes as Canadian oil producers have not committed to significant output increases needed to justify the project's economics. CEO Greg Ebel said the company will focus first on two smaller expansions: the 100,000 barrel-per-day Flanagan South Expansion and the 50,000 barrel-per-day Southern Access Extension, both targeting secondary pipelines that feed into the Mainline.
Enbridge announced the Mainline phase-two project in November 2025, with expected completion by 2027. The postponement reflects producer concerns about the federal government's commitment to promised policy changes and regulatory rollbacks designed to accelerate oil sands growth. While Ottawa and Alberta reached an agreement aimed at speeding development, most proposed changes remain non-binding and have not been written into law.
Ebel said Enbridge expects producers will wait for greater certainty before making binding investment decisions on new pipelines. The company's president of liquids pipelines, Colin Gruending, told investors the company does not expect producers to commit to major pipeline projects "until there is more policy and regulatory certainty."
The postponement marks a cooling in pipeline expansion momentum even as the federal and provincial governments work to clear regulatory paths for Alberta's oil sector. The Mainline phase-two was previously expected to enter service by the end of 2028.
By the numbers
How much capacity would Enbridge's Mainline phase-two expansion have added?
Enbridge's Mainline phase-two expansion would have added 250,000 barrels per day of capacity.
What two smaller expansions is Enbridge prioritizing instead?
Enbridge is focusing on the Flanagan South Expansion, which would add 100,000 barrels per day, and the Southern Access Extension, which would add 50,000 barrels per day.
When was the Mainline phase-two project originally announced?
Enbridge announced the Mainline phase-two project in November 2025.
