Enbridge postpones Phase 2 of Mainline oil pipeline expansion

Enbridge Inc. announced it is delaying Phase 2 of the Mainline oil pipeline expansion, which would increase capacity for transporting Alberta crude to the U.S. Midwest. The company cited uncertain demand forecasts, extended regulatory approvals and a desire to optimise existing infrastructure before further expansion. No new timeline was provided.

The phase would involve squeezing more oil through the existing pipe using friction‑reducing chemicals and upgraded pumps and stations, avoiding new land‑owner negotiations. Analysts said the pause could tighten Canadian crude availability, potentially raising prices and shifting shipments to rail or truck. They also noted that producers lack clarity on federal and Alberta policy support and have already committed volumes to competing projects such as the Prairie Connector and Trans Mountain pipelines. Enbridge continues work on the American leg that moves oil from the Midwest to the Gulf Coast.