Enbridge eyes second phase of Mainline oil pipeline expansion

[steel long pipes in crude oil factory during sunset]
kodda/iStock via Getty Images

Enbridge (ENB [https://seekingalpha.com/symbol/ENB]) said Friday it plans early next year to formally gauge commercial interest [https://www.reuters.com/business/canadas-enbridge-misses-third-quarter-profit-estimates-2025-11-07/] in a second phase of capacity expansion on its Mainline crude pipeline network that could add 250,000 bbl/day of additional capacity by 2028, Reuters reported.

The phase 2 project would be in addition to a planned phase 1 expansion which would add 150,000 bbl/day of capacity and be placed into service by 2027, Enbridge (ENB [https://seekingalpha.com/symbol/ENB]) said; the company expects to make a final investment decision on phase 1 before year-end.

Enbridge (ENB [https://seekingalpha.com/symbol/ENB]) missed Q3 adjusted earnings [https://seekingalpha.com/news/4518447-enbridge-non-gaap-eps-of-c046-misses-by-c005] estimates, pressured by higher financing costs from capital investments, but it said the Mainline pipeline shipped a record 3.1 million bbl/day during the quarter, reflecting strong customer demand for Canadian oil.

Canadian oil production hit a record high of 5.1 million bbl/day last year, and optimizing the Mainline pipeline is the "quickest and most cost-effective way" to address the country's rising oil production, Enbridge (ENB [https://seekingalpha.com/symbol/ENB]) Executive VP Colin Gruending said on the earnings conference call [https://seekingalpha.com/article/4840338-enbridge-inc-enb-ca-q3-2025-earnings-call-transcript], according to Reuters.

"There could be much more upside to monetize the trillions of dollars of value up in northern Alberta," if the Canadian government drops some of the regulatory and policy hurdles that have inhibited investment in the sector in recent years, Gruending said on the call.

Enbridge (ENB [https://seekingalpha.com/symbol/ENB]) +0.3% in Friday's trading after reporting Q3 net profit fell to C$682 million (~US$483.1 million), or C$0.30/share, from C$1.29 billion, or C$0.59/share, in the year-earlier quarter, with the decline primarily due to changes in the estimated value of financial instruments used to manage foreign exchange, interest rates and commodity prices; on an adjusted basis, earnings of C$0.46/share fell from C$0.55/share a year ago and missed FactSet consensus of C$0.51/share.

Enbridge (ENB [https://seekingalpha.com/symbol/ENB]) reaffirmed its near-term target growth to 2026 of 7%-9% of adjusted EBITDA and 4%-6% growth in adjusted EPS.

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