Enbridge Inc. has announced plans to spend US$1.4 billion to increase its capacity to ship Canadian heavy oil to the United States.

The company says it has reached a final investment decision to add capacity on its Mainline network and its Flanagan South pipeline.

The move comes as it says it faces customer demand to increase deliveries of Canadian heavy oil to key refining markets in the U.S. Midwest and Gulf Coast.

Enbridge says it will add 150,000 barrels per day of capacity on the Mainline system, which extends from Alberta to the U.S. Midwest and Eastern Canada.

The Flanagan South plan will add an additional 100,000 barrels per day of capacity.

The company says the added capacity is expected to be available in 2027.

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