Canadian pipeline company Enbridge will spend C$2.5 billion ($1.73 billion) in upgrades to its North American oil and gas systems, company officials announced Tuesday.

The plans, announced as part of Enbridge's Investor Day presentation, include C$2 billion for Enbridge's Mainline system in the U.S. and Canada through 2028 to provide additional pipeline egress from the Western Canadian oilfields.

"This investment will maximize existing operating capacity so that our customers have an even safer, and more reliable, cost-effective path to deliver their product to market," Chief Executive Officer Greg Ebel said.

Plans also call for C$400 million for the expansion of the T-North system, which has an expected in-services date of 2028 and is intended to improve natural gas egress from British Columbia and support LNG exports to the Pacific region, as well as C$100 million for the second phase of the T15 project in North Carolina, which is expected to double the capacity of natural gas delivered to the Duke Energy Roxboro Plant, which is transitioning from coal-fired generation, according to the company's announcement.

The announcement of the Mainline expansion spending came on the same day that President Trump was imposing new tariffs on U.S. imports from Canada, including 10% tariffs on energy imported from that country.

The company's Mainline system is an interconnected network of pipelines and runs nearly 8,600 miles and transports about 3 million b/d of oil to the U.S. Midwest and Eastern Canada. In the U.S. it serves markets in Minnesota, northern Illinois, Indiana, Ohio and Michigan. The system also connects to other pipelines serving the storage hub in Cushing, Okla., and the Gulf Coast.

Enbridge says its pipelines move about 30% of the crude oil produced in North America and account for 65% of all U.S.-bound Canadian oil exports and 40% of U.S. oil imports.

In addition to the new capital investments, Enbridge officials said they were also evaluating about C$50 billion in additional investments through 2030.

Liquids pipeline projects under consideration include mainline optimizations, market access extensions, U.S. Gulf Coast expansions and lower-carbon opportunities.

The company is also looking into expansions of power demand-related projects for its gas transmission operations in the Permian Basin and Gulf Coast, as well as more than 3 GW of late- and mid-stage renewable power projects.

"Growing demand for all forms of energy is creating opportunities across all four of our franchises, emphasizing the value of scale and diversification," Ebel said.

This content was created by Oil Price Information Service, which is operated by Dow Jones & Co. OPIS is run independently from Dow Jones Newswires and The Wall Street Journal.

--Reporting by Steve Cronin, scronin@opisnet.com; Editing by Michael Kelly, mkelly@opisnet.com

(END) Dow Jones Newswires

March 04, 2025 17:18 ET (22:18 GMT)

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