Canadian pipeline operator Enbridge Inc. announced Friday it is postponing the second phase of its Mainline crude pipeline expansion, citing a lack of volume commitments from domestic oil producers amidst lingering regulatory uncertainty.

The delayed project phase would have added 250,000 barrels per day of export capacity to the Mainline network, a vital conduit supplying Canadian crude to U.S. refining hubs.

First announced in November 2025 at an estimated cost of $1.4 billion, the expansion was originally projected to enter service by the end of 2028.

Instead, Enbridge is pivoting its immediate capital deployment toward two secondary pipeline routes in Illinois that connect directly into the Mainline system.

The company will prioritize the 100,000-barrel-per-day Flanagan South Expansion and the 50,000-barrel-per-day Southern Access Extension, which route crude onward to U.S. refining centers and the Gulf Coast.

Enbridge Chief Executive Greg Ebel noted that Canada faces a "generational opportunity" to expand its petroleum output, bolstered by recent federal policy adjustments and environmental regulation rollbacks.

However, executive leadership emphasized that producers remain cautious about making major capital commitments.

While a recent framework agreement between the federal government and Alberta sought to accelerate growth in the oil sands, Enbridge officials pointed out that key policy incentives remain non-binding and have not been enshrined into law.

"Nor do we expect producers to be making binding FID-able commitments to new pipelines until then," said Colin Gruending, president of liquids pipelines at Enbridge, using the industry acronym for final investment decisions.

A company spokesperson confirmed that prioritizing the secondary pipeline projects officially delays the timeline for the second phase of the Mainline project.

The Mainline system remains the primary export pathway for Western Canadian crude entering the U.S. market.

While Enbridge executives expressed confidence in long-term Canadian production, they made clear that resumed work on the Mainline expansion will depend on producers securing regulatory certainty before committing to long-term shipping volumes.