$1.4 billion Midwest pipeline expansion to move more Canadian oil to U.S. Gulf

(UI) — Enbridge Inc. has approved a $1.4 billion expansion of its Mainline and Flanagan South Pipeline systems, a project designed to move more Canadian heavy crude into key refining markets in the U.S. Midwest and Gulf Coast.

The Mainline Optimization Phase 1 project (MLO1) will increase capacity on Enbridge’s Mainline network by 150,000 barrels per day and expand Flanagan South by an additional 100,000 barrels per day. The company expects the new capacity to enter service in 2027.

“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,” said Colin Gruending, Enbridge’s Executive Vice President and President of Liquids Pipelines. “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.”

Enbridge plans to deliver the added capacity through a mix of upstream system optimizations, terminal upgrades and new pump stations on Flanagan South. The expansion will also make use of available capacity on the Seaway Pipeline, jointly owned by Enbridge and Enterprise Products Partners.

The company said the Flanagan South expansion is backed by long-term take-or-pay contracts providing full-path service from Edmonton to Houston. Most existing shippers extended their contracts into the next decade during this year’s open season.

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