The pipeline giant had been advancing plans for a second expansion of the three-million-barrel-per-day Mainline system, which carries crude from Western Canada to Eastern Canada and the U.S. Midwest. It said Friday it is postponing part of the project to give producers more time to firm up plans to get more oil out of the ground. (The Logic)
Talking point: The announcement underscores that, despite recent non-binding commitments from the federal and Alberta governments aimed at boosting oil production, the industry has not yet greenlighted any new major growth projects. It also comes as competing export proposals are gathering momentum, including Alberta’s proposed West Coast oil pipeline and South Bow’s plans to revive a portion of its former Keystone XL project with U.S. partner Bridger Pipeline. Enbridge is also navigating more hurdles in its long-running legal battle over its Line 5 pipeline. Last week, a U.S. appeals court found the company liable for trespass for running the pipeline under the Bad River Band’s reservation in northern Wisconsin, while separately, the Michigan Supreme Court has ordered state regulators to reconsider a key permit for the company’s proposed tunnel beneath the Straits of Mackinac.
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