The Canadian energy infrastructure group Enbridge has reached a final investment decision (FID) for its Mainline Optimization Phase 1 project (MLO1) connecting the Canadian and US refining markets (Enbridge press release, 14/11/2025). The MLO1 pipeline plans to expand the capacity of Enbridge’s Mainline and Flanagan South (FSP) pipelines to add a combined capacity of 250 kb/d for heavy oil moving towards the US Midwest and Gulf Coast, once it starts operations in 2027. The expansion of the FSP (+100 kb/d) is partly financed by long-term take-or-pay contracts for full-path service from Alberta (CA) to Texas (US) which is expected to bring “attractive returns.”
According to Enerdata’s Global Energy Research, the Canadian net oil exports have almost tripled since 2010, from 60 Mt to 186 Mt in 2024.