In all the hubbub about OPEC’s agreement this week to curb oil exports, let’s not forget about another bullish development for North American energy production.

This one came Tuesday when the Canadian government approved two crude pipeline projects crucial to the country’s oil producers as well as the pipeline operators.

Kinder Morgan (NYSE: KMI) received final federal approval for its $5.4 billion Trans Mountain expansion. It plans to lay new pipe along much of the current 715-mile route between Edmonton and the Pacific Coast near the U.S. border to nearly triple Trans Mountain’s total capacity to 890,000 barrels per day. Construction is expected to begin next September and be completed in late 2019. Eighty percent of the expanded pipeline’s capacity has been pre-sold under 15- and 20-year contracts. The expansion accounts for nearly a third of Kinder Morgan’s project backlog for the next five years.

Meanwhile, leading Canadian crude pipeline operator Enbridge (NYSE: ENB) received approval to replace and expand a key component of its main line, but was denied on a proposed new route from Alberta’s interior to a Pacific outlet in northwest Canada.

The Line 3 replacement project involves 1,100 miles of pipeline between Edmonton and Superior, Wisconsin, and will nearly double that link’s current effective capacity to 760 barrel per day. It too is scheduled to be completed in 2019.

While its approval was expected, so was the rejection of Enbridge’s proposed Northern Gateway pipeline, which would have crossed a boreal rain forest and had already run into a legal roadblock. And while the Northern Gateway was an entirely Canadian affair, the increased flows from Line 3 will feed into the U.S. pipelines owned by its affiliated Enbridge Energy Partners (NYSE: EEP) MLP.

Ami continuing opposition from environmentalists, native tribes and some provincial and local politicians, the approvals by the left-of-center government of Prime Minister Justin Trudeau signify broad backing for Canada’s energy industry, a key provider of jobs and export earnings.  

While none of the equities involved moved much in response to the pipeline news (or to OPEC’s cut, for that matter) the approvals will give Kinder Morgan and Enbridge an additional long-term and secure income stream backed by Canada’s still growing crude output from oil sands projects.

We continue to recommend increasing stakes in Enbridge Energy Partners and its dividend-paying proxy Enbridge Energy Management (NYSE: EEQ). Buy EEP below 30 and EEQ below $29. KMI stays a Hold. All three are in our Conservative Portfolio.