Oil, Gas and Shale
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Enbridge Reaches $1.4 Billion FID on Its Mainline Expansion Project

Published: February 2, 2026 |

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Enbridge has reached a final investment decision on the Mainline Optimization Phase 1 project (MLO1). MLO1 will add capacity to the company’s Mainline network and Flanagan South Pipeline (FSP) to meet customer demand for incremental egress, increasing deliveries of Canadian heavy oil to key refining markets in the U.S. Midwest (PADD II) and Gulf Coast (PADD III).

“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,” said Colin Gruending, Enbridge’s executive vice President and president of Liquids Pipelines.

“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,” added Gruending.

MLO1 will increase capacity on the Mainline through a combination of upstream optimizations and terminal enhancements. In addition, Enbridge plans to add pump stations and terminal enhancements for FSP to increase capacity and will utilize existing capacity on Seaway Pipeline1.

The FSP expansion is underpinned by long-term take-or-pay contracts for full-path service from Edmonton, Alberta to Houston, Texas, which support attractive returns for MLO1. As part of the open season process on FSP earlier this year, the majority of existing customers elected to extend their existing full-path contracts through the next decade.


Enbridge safely connects millions of people to the energy they rely on every day, fueling quality of life through our North American natural gas, oil and renewable power networks, and their growing European offshore wind portfolio. They’re investing in modern energy delivery infrastructure to sustain access to secure, affordable energy, and building on more than a century of operating conventional energy infrastructure and two decades of experience in renewable power to advance new technologies including hydrogen, renewable natural gas and carbon capture and storage.


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