Canadian pipeline operator Enbridge Inc. is moving closer to expanding its North American Mainline network after a recent commercial process showed strong demand for additional oil transport capacity to the U.S. Gulf Coast.

The company announced Friday that an "open season" for its Flanagan South pipeline, which gauges interest from oil shippers, was oversubscribed. 

Enbridge CEO Greg Ebel said the successful process brings the energy giant closer to formally sanctioning the proposed expansion of its Mainline system, the largest pipeline network in North America with a capacity of 3 million barrels of crude per day.

With the strong demand for Canadian oil by U.S. companies on the Gulf Coast, the Canadian energy giant plans to make a final investment decision on the first phase of the project, adding 150,000 barrels of capacity by the end of the year. 

The Flanagan South pipeline, which runs 593 miles from Illinois to Oklahoma, is a key part of the larger Mainline network. Ebel noted that the Mainline system has been in apportionment, meaning demand exceeded available capacity, for six of the first eight months of 2025.

The push for more capacity comes as oil sands production in Canada, the world's fourth-largest oil producer, is expected to increase amid trade tensions with the United States. A recent S&P Global report projects that Canada’s oil sands will produce 3.8 million barrels of crude per day by 2030, a 15% increase from current levels.

Ebel also commented on the possibility of a new pipeline to overseas markets, stating it is unlikely unless the federal government repeals some of its environmental policies.

Early this year, Ebel called for a “National Interest” designation for major pipeline projects to allow companies to reinvest and revive stalled pipeline projects, such as Enbridge’s cancelled Northern Gateway pipeline project.