With the world entering a new year with new and exciting possibilities, Enbridge, a Canadian energy major, has revealed its plans to expand its crude capacity into the US refining markets, setting the stage for a $1.4 billion expansion. The new approval comes as the world has seen the US energy market revival, leading to a litany of energy companies committing substantial assets and resources towards the American energy market. Following the US President’s recent calls to increase energy production in the US, Enbridge is perfectly positioned to become a major player in the American energy market.
Canadian Enbridge to expand its already impressive pipeline capacity in North America
The US has seen a substantial increase in energy production following Donald Trump’s recent calls to boost production of essential energy resources in America. He has also been on a drive to roll back permits and even cancel several renewable energy projects in recent months since taking office for the second time. On his first day in office, Trump said the US would “drill, baby drill”.
Looking to capitalize on the new opportunity for growth in the US energy market, Enbridge, was already boasts an impressive energy pipeline infrastructure in the North American market, has approved a $1.4 billion project to expand its crude capacity into the US refining markets in the near future. The company has stated that the plan is to expand its Mainline and Flanagan South pipelines, which are used to transport Canadian heavy crude from oil sands to the U.S. Midwest as well as the Gulf Coast.
The new investment in its energy pipelines has set the stage for a long and prosperous relationship with the US
The company has said that the investment comes as Enbridge aims to balance liquids growth due to its push into natural gas utilities as well as low-carbon fuels. The Canadian energy major said that the Mainline Optimization Phase 1, or MOL-1 for short, could potentially add approximately 150,000 barrels per day to its Mainline network as well as 100,000 bpd to the Flanagan South Pipeline, with more expected by 2027.
Enbridge’s record-setting performance has led to a new wave of expansion
The company noted that in the third quarter of 2025, its Mainline pipeline moved an astonishing record-setting 3.1 million bpd, enhancing access to the American refining projects. According to Enbridge, the MLO1 pipeline will increase capacity through a substantial upstream optimization as well as significant upgrades to terminals.
Enbridge will also expand its terminals for the Flanagan South pipelines, as well as boost its capacity overall. The new expansion project comes as the US energy market sees a litany of companies planning new pipelines that will significantly increase energy production in the North American market.
“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. 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”. – Colin Gruending, Enbridge’s Executive Vice President and President of Liquids Pipelines
The US energy market has been growing at an astonishing rate as of late
Enbridge’s ambitions for the US energy market come as the US and Japan recently agreed on a new investment framework to pump up to $550 billion into the region’s energy infrastructure. Despite calls from the global community to diversify the American energy market, and the global one as well, the US is fostering investments into its conventional energy production markets, such as gas and oil. Enbridge’s clear plan is to become a major player in the pipeline market in the North American sector.
