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Money

Enbridge approves $1.4 billion venture to spice up Canadian oil flows to US

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Last updated: November 16, 2025 2:13 am
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Enbridge approves .4 billion venture to spice up Canadian oil flows to US
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By Amanda Stephenson

(Reuters) -Canadian pipeline operator Enbridge on Friday accredited $1.4 billion in growth tasks for its Mainline and Flanagan South pipelines to the U.S., which it harassed is essentially the most ​logical vacation spot for brand spanking new crude export capability out of Canada.

The tasks will add a mixed 250,000 barrels per day of ‌capability for Canadian heavy oil shippers shifting oil to the U.S. Midwest and Gulf Coast. The extra capability is predicted to come back on-line in 2027.

Calgary-based ‌Enbridge additionally introduced final week its plans early subsequent yr to formally gauge industrial curiosity in a second part of growth on its Mainline community, which might add one other 250,000 bpd of capability.

Though the federal government of Canada, which sends 90% of its oil exports to the U.S., is attempting to diversify away from that market on account of unpredictable commerce insurance policies beneath President Donald Trump, Enbridge Govt ⁠Vice-President Colin Gruending instructed reporters that U.S. ‌growth makes essentially the most sense.

“That is the place we have got the world’s largest refining complicated and who desires extra of our Canadian oil,” he mentioned.

“The chance set is fairly robust ‍(to the) south, and there are all types of geopolitical causes to try this and strengthen ties there.”

Canadian oil manufacturing hit a file 5.1 million bpd final yr and Enbridge is forecasting it is going to see 500,000 to 600,000 bpd of provide development by the tip of ​the last decade.

The nation’s primary oil-producing province of Alberta is working to discover the feasibility of a brand new crude pipeline to British ‌Columbia’s northwest coast, with the intention to enhance Canadian oil exports to Asia.

Whereas Enbridge is supporting Alberta’s work with recommendation and technical assist, neither it nor another non-public firm has dedicated to constructing a brand new pipeline to Canada’s west coast.

The Trans Mountain pipeline, which is owned by the Canadian authorities and is at the moment the one choice to ship Canadian oil on to Asian markets, tripled its capability final yr with a C$34 billion ($24.2 billion) growth.

Trans Mountain’s operator is exploring a collection of incremental ⁠growth tasks, which might add 200,000 to 300,000 bpd by ​2029.

These tasks, mixed with Enbridge’s deliberate expansions to the U.S.,​ ought to present sufficient capability development to account for forecast Canadian provide will increase by means of the tip of the last decade, Gruending mentioned.

If the Canadian authorities scraps some regulatory and coverage hurdles which have inhibited the sector’s development ‍lately, Gruending mentioned,⁠ provide might develop greater than forecast. However in that case, he mentioned, Enbridge has the power to tackle extra Mainline expansions which might take precedence over a brand new pipeline to the nation’s west coast.

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