Enbridge announced Friday that it has reached a final investment decision on the Mainline Optimization Phase 1 project (MLO1), a development set to bolster Canadian heavy oil deliveries to critical U.S. refining hubs.
The project will expand capacity across Enbridge's Mainline network and Flanagan South Pipeline (FSP), addressing rising customer demand for additional egress from Canada. It targets increased shipments to the U.S. Midwest (PADD II) and Gulf Coast (PADD III) markets.
Project Highlights
Capital Investment: US$1.4 billion in aggregate costs.
Capacity Additions: 150 kbpd on the Mainline system and 100 kbpd on the FSP.
In-Service Date: Expected availability in 2027.
"MLO1 is expected to add capital-efficient and timely egress capacity from Canada, supporting Canadian production and increasing connectivity to the best refining markets in North America," said Colin Gruending, Enbridge's Executive Vice President and President of Liquids Pipelines.
"This project demonstrates the competitive advantage of leveraging existing networks to meet growing customer demand, supporting long-term energy security and affordability across North America."
The enhancements will involve upstream optimizations and terminal improvements on the Mainline, alongside new pump stations and terminal upgrades for the FSP. Enbridge will also utilize existing capacity on the Seaway Pipeline.
The FSP expansion is backed by long-term take-or-pay contracts for full-path service from Edmonton, Alberta, to Houston, Texas, ensuring strong returns.
During an open season process earlier this year, the majority of existing FSP customers opted to extend their full-path contracts through the next decade, underscoring robust market support for the initiative.