Enbridge Inc. and Energy Transfer LP are exploring a significant expansion of pipeline capacity in Illinois, a move designed to facilitate the flow of increasing Canadian oil sands production to Midwest and U.S. Gulf Coast markets. 

The joint venture is marketing a project dubbed the Southern Illinois Connector, which aims to transport up to 200,000 barrels of crude per day.

The proposed project would involve reconfiguring and upgrading existing pipeline systems, alongside the construction of a new segment, according to a statement from Calgary-based Enbridge. 

This initiative comes in direct response to what the companies describe as robust industry demand for enhanced shipping capacity from Flanagan, Illinois, to the crucial U.S. Gulf Coast refining centers.

A key component of the Southern Illinois Connector would be a new pipeline linking the Illinois oil hubs of Wood River and Patoka. This connection is specifically designed to accommodate the anticipated surge in Canadian oil production. 

The International Energy Agency projects Canada's oil output to increase by 680,000 barrels per day by 2030, with the majority stemming from oil sands through optimizations and debottlenecking of existing operations, rather than new large-scale projects.

Sources familiar with the plan indicate that the Southern Illinois Connector would receive Canadian crude from Enbridge's extensive Mainline system. 

From Patoka, the oil would then transfer to the Energy Transfer Crude Oil Pipeline, which boasts a capacity of 470,000 barrels per day and delivers crude to a terminal in Nederland, Texas, serving refineries in the Port Arthur area.

An "open season" for the project, allowing potential shippers to express interest in securing capacity, is currently underway and is scheduled to close on July 18, Enbridge confirmed.