Canadian pipeline and energy company Enbridge has unveiled plans to direct C$2.5bn ($1.74bn) towards fortifying its liquids and natural gas systems in North America.
Within this investment, C$2bn ($1.39bn) is allocated for the Mainline network enhancements, scheduled through 2028.
The Mainline is one of the most extensive crude oil pipeline systems in North America with more than 13,800km of active pipe. It plays a pivotal role in transporting diverse energy carriers from Edmonton, Alberta, to primary markets across Canada and the US Midwest.
This capital infusion is intended to strengthen the Mainline system’s reliability and operational efficiency, ensuring it meets future demand safely and at full capacity.
Enbridge expects these upgrades to deliver favourable risk-adjusted returns under the Mainline Tolling Settlement, with a phased service rollout anticipated until 2028. Currently, Enbridge facilitates the movement of about 40% of crude oil produced in North America.
This announcement comes amid the enforcement of a 10% tariff by US President Donald Trump on Canadian energy imports. Despite this development, Enbridge’s fourth-quarter earnings report indicated that it does not expect a significant impact on its financial guidance due to these levies.
Beyond the Mainline network, Enbridge plans to invest C$400m ($278.2m) in expanding the T-North segment of its Westcoast Pipeline through the Birch Grove initiative. This expansion aims to increase T-North’s capacity to 3.7 billion cubic feet per day by 2028.
Following a successful open season conducted by Westcoast Energy in June 2024, this expansion will enhance market access for natural gas producers in northeastern British Columbia (BC), Canada. It will primarily serve output from the Montney formation.
The Westcoast Pipeline extends over 2,953km from Fort Nelson in northeastern BC to Gordondale near the BC-Alberta border and currently operates at a capacity of 3.6 billion cubic feet per day. Improvements include pipeline looping and station modifications within existing rights of way with completion targeted by 2028.
Additionally, Enbridge had earmarked C$100m ($69.5m) last month for expanding the T15 project in North Carolina, US. This involves extending a 72km natural gas pipeline supplying Duke Energy’s Roxboro facility.
The expanded T15 project is projected to deliver approximately 510 million cubic feet per day upon completion. Both phases are expected to have an aggregated cost of C$700m ($486.8m) and become operational between 2027 and 2028.
