Enbridge Adding Canadian Egress to Key U.S. Refining Markets, Enhancing North American Energy Security

Core Viewpoint - Enbridge Inc. has made a final investment decision on the Mainline Optimization Phase 1 project (MLO1), which aims to enhance capacity in its Mainline network and Flanagan South Pipeline to meet increasing customer demand for Canadian heavy oil deliveries to U.S. refining markets [1][2]. Project Details - MLO1 is expected to incur an aggregate capital cost of approximately US$1.4 billion and will add 150,000 barrels per day (kbpd) of capacity to the Mainline system and 100 kbpd to the Flanagan South Pipeline [7]. - The project will utilize a combination of upstream optimizations and terminal enhancements, including the addition of pump stations and terminal upgrades for the Flanagan South Pipeline [3]. - Long-term take-or-pay contracts underpin the Flanagan South Pipeline expansion, ensuring attractive returns for the project [3]. Strategic Importance - The project is positioned to support Canadian production and enhance connectivity to key refining markets in North America, thereby contributing to long-term energy security and affordability [2]. - The majority of existing customers opted to extend their full-path contracts for the Flanagan South Pipeline through the next decade, indicating strong demand and commitment [3]. Timeline - Capacity from the MLO1 project is anticipated to be available by 2027 [7].