U.S. President Donald Trump has greenlit a new pipeline project, issuing a presidential permit to Bakken Pipeline Company LP for the construction, connection, operation, and maintenance of facilities in Burke County, North Dakota, at the Canada-U.S. border. This marks a concrete step to enhance crude oil and petroleum product transportation between the two nations.
Bakken Pipeline Company, a limited partnership and subsidiary of Enbridge (TSX: ENB), anchors this development. Enbridge, a major player in cross-border oil and gas pipeline networks, also received permits for the operation and maintenance of existing pipelines in Pembina County, North Dakota, and St. Clair County, Michigan. These approvals fortify Enbridge’s infrastructure footprint across key border regions.
The broader strategy behind these permits aligns with Enbridge’s ongoing expansion plans. Last year, the company committed US$1.4 billion to its Mainline Optimization project, targeting an additional 150,000 barrels per day of capacity on its cross-Canada system, which feeds into the U.S. Midwest. Another 100,000 barrels per day will flow through the Flanagan South system, linking Illinois to the U.S. Gulf Coast, home to the world’s largest refining complex for heavy oilsands crude.
Looking ahead, Enbridge has outlined a potential second phase for the Mainline Optimization, which could add another 250,000 barrels per day by 2028 using the existing Dakota Access Pipeline from North Dakota to southern Illinois. This phased approach prioritizes expanding current capacity over building entirely new pipelines from scratch.
Collaboration with regional governments underscores the strategic importance of these projects. In January the Alberta government formed a working group with Enbridge to explore further pipeline capacity increases to the U.S. market. This partnership signals a mutual interest in bolstering energy trade despite lingering trade frictions between the two countries.
Enbridge’s network remains a critical artery for Canadian oilsands crude, with the Gulf Coast refineries as a key destination. The approved permits and planned expansions position the company to move an additional 500,000 barrels per day over the next few years, a figure that could reshape supply dynamics in the North American oil market by the end of the decade.
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