Enbridge Inc. announced that it has reached a final investment decision on the Mainline Optimization Phase 1 project (MLO1).
Enbridge graphic
Mainline optimization crude path (CNW Group/Enbridge Inc.)
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).
Key details:
Mainline optimization crude path (CNW Group/Enbridge Inc.)
- Expected aggregate capital cost of US$1.4 billion
- Adding 150 kbpd of Mainline system capacity
- Adding 100 kbpd of FSP capacity
- Capacity is anticipated to be available in 2027
"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".
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 Pipeline. 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.
