Keystone XL revival talk resurfaces as Prairie Connector pipeline proposal advances
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U.S. President Donald Trump said the canceled Keystone XL oil pipeline "may be awoken from the grave" in a social media post this week. The statement came amid U.S.-Canada trade talks and follows South Bow's proposal for a new 550,000-barrel-per-day pipeline called Prairie Connector. South Bow declined to comment on Trump's recent posts.
Key Facts
- Keystone XL was a proposed 1,900-km crude pipeline designed to carry 830,000 barrels per day from Alberta to Cushing, Oklahoma, and Gulf Coast refineries.
- South Bow, the TC Energy spinoff, is partnering with Bridger Pipeline on Prairie Connector, a 550,000-barrel-per-day project from Alberta to Wyoming.
- South Bow will decide whether to proceed with Prairie Connector in 2027, with its CEO seeking proof that a U.S. presidential permit is "durable."
- Reuters reported that Canadian Prime Minister Mark Carney raised a potential Keystone XL revival during trade talks with Trump last October.
Keystone XL History
Keystone XL was a proposed crude pipeline roughly 1,900 km long that would have carried 830,000 barrels per day from northern Alberta's oil sands to Cushing, Oklahoma, and then to Gulf Coast refineries. The project was rejected by President Barack Obama's administration, revived by Trump during his first term, and ultimately canceled after President Joe Biden revoked a key permit in 2021. TC Energy, the company behind Keystone XL, lost billions when the pipeline was canceled and later spun off its crude pipelines business into South Bow.
Prairie Connector Proposal
South Bow and U.S. company Bridger Pipeline are working on Prairie Connector, a 550,000-barrel-per-day project that would run from Alberta to Wyoming. The project would use some of the Keystone XL pipe installed on the Canadian side before that project was canceled. South Bow has said it will decide whether to proceed with Prairie Connector in 2027, and its CEO has said he needs proof that a U.S. presidential permit is "durable."
Trade Talks Context
Reuters reported that Canadian Prime Minister Mark Carney raised a potential revival of Keystone XL during trade talks with Trump last October, presenting it as a possible area of cooperation. Trade talks then stalled for months, and South Bow declined to comment on Trump's recent posts.
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Keystone XL revival talk resurfaces as Prairie Connector pipeline proposal advances
