CALGARY, July 31 (Reuters) - Canadian pipeline operator

Enbridge ( ENB ) said on Friday it was postponing the

250,000-barrel-per-day second phase of its Mainline crude

pipeline network, partly due to Canadian oil producers not

committing to significant output increases.

The project would have increased exports of Canadian crude

to U.S. refineries.

But Enbridge ( ENB ) CEO Greg Ebel said the company will focus first

on its 100,000 bpd Flanagan South Expansion and its 50,000 bpd

Southern Access Extension, which will add capacity to two

secondary pipelines that connect to the Mainline in Illinois and

transport crude to multiple U.S. refining centers and the Gulf

Coast.

Ebel said Canada is facing a generational opportunity to

expand its oil output, thanks to recent federal government

policy changes and the rollback of some environmental rules.

But he said while a recent agreement between the federal

government and Alberta aimed at accelerating oil sands growth

could have a dramatic impact, most of the proposed changes

remain non-binding and have not been enshrined into law.

Enbridge ( ENB ) does not expect Canadian oil sands companies to

meaningfully boost production until there is more policy and

regulatory certainty, said Colin Gruending, the company's

president of liquids pipelines.

"Nor do we expect producers to be making binding FID-able

commitments to new pipelines until then," Gruending said,

referring to final investment decisions.

A company spokesperson confirmed the decision to prioritize

the secondary pipeline projects means a delay for the Mainline

phase two project, which Enbridge ( ENB ) had previously said could be

in service by the end of 2028.