Why did Enbridge delay its Canadian pipeline expansion (ML02), and what is its new near-term priority?

Enbridge delayed the ML02 expansion of its Mainline pipeline out of Canada because it requires Canadian and Alberta governments to finalize policies that encourage oil sands producers to commit to production growth—and for those producers to make concrete investment decisions—before proceeding. Its new near-term priority is advancing expansions on its US-based Flanagan South and Southern Access extension pipelines, which have simpler scope and better initial economics.

What are the implications of Enbridge’s delay for Canada’s oil export ambitions and pipeline capacity growth?

The delay is a setback for Canada’s goal to significantly increase oil exports, as the ML02 expansion was part of a broader suite of projects expected to grow pipeline capacity by ~2 million barrels per day; meanwhile, a newly proposed federal–Alberta pipeline to Canada’s west coast aims to add 1 million barrels per day of export capacity to Asia within a decade, partially offsetting the delay’s impact.

Enbridge Delays Canada Pipeline Expansion to Focus on US Growth

Jul 31, 2026

Enbridge Inc. delays Canadian Mainline pipeline expansion pending policy clarity and producer commitments, prioritizing US crude transport projects instead. The move impacts projected export capacity while the company remains optimistic about future Canadian policy environments.

bloomberg

2026-07-31

Enbridge Delays Canada Pipeline Expansion to Focus on US Growth

Enbridge Delays Canada Pipeline Expansion to Focus on US Growth

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