Enbridge, Energy Transfer Back New Pipeline to Move Canadian Oil South

(P&GJ) — Enbridge Inc. and Energy Transfer LP are exploring a potential pipeline expansion in Illinois aimed at improving the flow of Canadian crude to U.S. markets, according to a report from the Financial Post.

The proposed Southern Illinois Connector would expand transportation capacity by up to 200,000 barrels per day, supporting increased output from Canadian oil sands. The plan involves modifying parts of the existing infrastructure and constructing a new segment linking the hubs of Wood River and Patoka.

RELATED: Enbridge Plans 86-Mile Pipeline Expansion, Bringing 850 Workers to Northern B.C.

This pipeline addition would help move oil from Enbridge’s Mainline system to the Energy Transfer Crude Oil Pipeline, which runs from Patoka to the Gulf Coast, ending in Nederland, Texas—a key logistics point for refineries near Port Arthur.

The project comes in response to industry demand for expanded takeaway capacity, particularly as Canadian oil production is expected to climb by 680,000 barrels per day through 2030, driven largely by upgrades and efficiencies in the oil sands sector, the Financial Post noted.

Enbridge is currently conducting an open season through July 18 to gauge commercial interest from shippers that may use the new route.

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