Enbridge Prioritizes US Pipeline Expansion over New Canadian Line.

Enbridge Inc. CEO Greg Ebel stated that the company will prioritize expanding its pipeline systems to the US before considering a new oil line to the Canadian west coast. The expansion of the Mainline system to the US is expected to take priority, with the west-coast pipeline potentially being developed in the future. Enbridge has previously proposed a west-coast pipeline but did not receive government approval. The development of such a pipeline would require changes to federal law, including rolling back regulations implemented by the Canadian government.

Enbridge Inc.'s CEO, Greg Ebel, has emphasized the company's intention to focus on expanding its pipeline systems to the United States before considering a new oil line to the Canadian west coast. The expansion of the Mainline system to the US is expected to take priority, with the west-coast pipeline potentially being developed in the future. Enbridge has previously proposed a west-coast pipeline but did not receive government approval. The development of such a pipeline would require changes to federal law, including rolling back regulations implemented by the Canadian government.

Enbridge's open season for the Flanagan South Pipeline, which has a capacity of 100,000 bbl/d, was oversubscribed, indicating strong demand for additional oil transport capacity from Canada to the US Gulf Coast. The success of the Flanagan South open season has brought Enbridge closer to formally sanctioning the proposed expansion of its Mainline network. Ebel stated that Enbridge plans to make a final investment decision on Phase 1 of the project, which would add 150,000 barrels of capacity to the Mainline system, before the end of 2025 [1].

The Mainline system, which is already the largest pipeline system in North America, has been in apportionment for six of the first eight months of 2025. This means that demand has exceeded available pipeline capacity. Ebel also mentioned that the company's exposure to tariffs is negligible across its operations, and Canadian oil and gas delivered to the US via its systems has not attracted tariffs [1].

For natural gas, the picture in Canada is more positive. Enbridge has approved a $300 million expansion at its Aitken Creek storage facility in northeast British Columbia. The facility serves as a major source of natural gas to the LNG Canada terminal. The company has increased its capital commitment from $1.53 billion to $2.9 billion, according to its presentation [1].

Strong quarterly results for Enbridge indicate continued growth in its natural gas network. The company reported an adjusted EBITDA of $3.3 billion for the second quarter, a 7% increase from the same period in 2024. Enbridge's revenue contributions from its four U.S. natural gas utilities and natural gas transmission drove the increase [1].

Enbridge has also announced plans to expand its gas midstream network. During the second quarter, the company sanctioned a $100 million, 160 MMcf/d expansion of Texas Eastern Transmission (TETCO) Line 31, expected to be in service by 2028. This expansion will deliver natural gas from southern Appalachia to facilities along the southeast Texas coast [1].

In summary, Enbridge is prioritizing the expansion of its pipeline systems to the US, with the west-coast pipeline potentially being developed in the future. The company's strong performance in the second quarter and the positive outlook for its natural gas infrastructure indicate that Enbridge is well-positioned to capitalize on growing demand for both oil and natural gas.

References:
[1] https://www.hartenergy.com/exclusives/enbridge-focuses-lucrative-us-bound-midstream-traffic-213708
[2] https://www.reuters.com/business/energy/enbridge-sees-strong-demand-more-oil-pipeline-capacity-canada-us-gulf-2025-08-01/
[3] https://seekingalpha.com/news/4476723-enbridge-nears-flanagan-south-fid-sees-strong-demand-for-more-canada-to-us-pipeline-capacity