Enbridge Eyes Major Expansion as Oil Demand Surges
Enbridge, one of Canada’s leading energy infrastructure companies, is once again turning its attention to expanding its massive Mainline oil pipeline network. The company announced plans to formally assess commercial interest early next year for a second phase of expansion, which could add a substantial 250,000 barrels per day of additional capacity by 2028. This move, if approved, would further strengthen Canada’s ability to move its growing oil production to export markets, particularly in the United States.
Now, this proposed expansion comes on top of an earlier plan already in motion. Enbridge expects to make a final investment decision before the end of this year on the first phase of the project, which would add 150,000 barrels per day of new capacity and is targeted to begin operations by 2027. Together, these two stages could significantly enhance the Mainline system’s reach, helping producers in Western Canada access more international markets.
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However, the announcement wasn’t all about growth and optimism. Enbridge also reported that its third-quarter profits fell short of analysts’ expectations. The company posted an adjusted profit of 46 cents per share—slightly below the 51 cents that analysts had forecasted. The dip in earnings was largely due to higher financing costs from recent capital investments, including several U.S. gas utility acquisitions. Despite that, the company’s Mainline system performed remarkably well, transporting a record 3.1 million barrels per day during the quarter. This record flow clearly underscores the strong demand for Canadian crude, even in the face of higher costs and shifting energy policies.
Canada’s oil sands industry continues to show resilience. Despite global uncertainty and the energy transition push, the country hit a record production high of 5.1 million barrels per day last year. Enbridge expects production could grow by another half a million to 600,000 barrels per day by the end of the decade. And as that supply rises, so does the need for reliable infrastructure—something Enbridge seems ready to deliver.
Company executive vice-president Colin Gruending emphasized that optimizing the Mainline remains the “quickest and most cost-effective” way to meet Canada’s increasing oil transport needs. He also suggested that if federal regulations and policies are eased, even more pipeline capacity might be required to unlock what he called the “trillions of dollars of value” in Alberta’s oil reserves.
So, while Enbridge may have missed earnings targets this quarter, the broader story is one of expansion and anticipation. As Canada’s oil production scales new heights, the Mainline expansion could play a vital role in keeping that energy flowing—both across borders and into the future of the global oil market.
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