en.Wedoany.com Reported - Canadian pipeline operator Enbridge has announced the postponement of the Phase 2 expansion of its Mainline crude oil pipeline network, which was designed to have a daily throughput capacity of 250,000 barrels. Enbridge stated that the decision was partly driven by the lack of firm commitments from Canadian oil producers to significantly boost output.

The project would have increased exports of Canadian crude oil to U.S. refineries. Enbridge had previously indicated that the expansion could be operational by the end of 2028.

Enbridge will prioritize two other secondary pipeline expansion projects: the Flanagan South expansion (adding 100,000 barrels per day) and the Southern Access Extension project (adding 50,000 barrels per day). These two projects will add capacity to the two secondary pipelines connecting Mainline to Illinois, delivering crude to multiple U.S. refining hubs and the Gulf Coast.

Enbridge CEO Greg Ebel stated that, thanks to recent policy changes by the Canadian federal government and the repeal of certain environmental regulations, Canada is facing a generational opportunity to expand oil production. However, he also noted that while a recent agreement between the federal government and Alberta aimed at accelerating oil sands development could have significant implications, most of the proposed reforms remain non-binding and have not yet been enacted into law.

Colin Gruending, president of Enbridge's liquids pipelines division, said that Enbridge does not expect Canadian oil sands companies to significantly ramp up production until the policy and regulatory environment becomes more certain. He added that, until then, producers are not expected to make binding commitments on new pipelines that would meet final investment decision (FID) standards.

An Enbridge spokesperson confirmed that the decision to prioritize the secondary pipeline projects means the Mainline Phase 2 project will be delayed.