U.S. President Donald Trump on Thursday signed an order granting a cross-border permit to a project that would revive parts of the Keystone XL pipeline to transport Canadian oil from the U.S.-Canada border to Guernsey, Wyoming.
The pipeline, proposed by Canadian pipeline company South Bow SOBO.TO and its U.S. partner Bridger Pipeline, could increase Canada’s crude exports to the U.S. by more than 12% if it goes ahead. A presidential permit was required for the project to proceed.
The new proposal involves a different route through the U.S. than the previous Keystone XL project, which was canceled by former President Joe Biden in 2021 after years of Indigenous and environmental opposition.
“Slightly different than the last administration,” Trump said at a White House event, referring to his administration’s attitude towards crude oil infrastructure. “They wouldn’t sign a pipeline deal, and we have pipelines going up.”
PROJECT TO USE SOME KXL PIPE
But the project will use some of the previously built pipe on the Canadian side, where Keystone XL is already fully permitted. South Bow was spun off by former Keystone XL proponent TC Energy in 2024 to take over its oil pipeline business. Approximately 150 km (93 miles) of pipe has been built in Canada and sitting idle since Keystone XL’s cancellation.
Bridger Pipeline has proposed building a 645-mile pipeline to transport heavy Canadian oil through eastern Montana and eastern Wyoming.
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Bridger Pipeline executive partner Tad True hailed the White House authorization, saying it brings the cross-border project “one step closer to reality.”
South Bow is seeking firm commitments from Canadian oil shippers for 450,000 barrels per day on the pipeline. A South Bow spokesperson said the project remains in early stages and is subject to commercial and stakeholder discussions, as well as regulatory processes.
Analysts say Guernsey is not an end market for oil, so additional links would need to be built to transport oil to refining hubs such as Cushing, Oklahoma, Patoka, Illinois, and the U.S. Gulf Coast.
State regulatory permits will also be required, and potential court challenges remain a risk, said Matthew Lewis, founder of Plainview Energy Analytics.
“Provided potential shippers are comfortable with the regulatory risk, the economics of the project appear sound, and the pipeline will be able to offer competitive rates to major U.S. market hubs,” Lewis said.
Canada is the world’s fourth-largest oil producer, and its production is forecast to grow.
Trump – whose tariffs and annexation threats have strained relations with Canada – has repeatedly called for lower oil prices and many U.S. refiners depend on the 4.4 million bpd Canada sends south of the border.
Canada has framed the prospect of a new cross-border oil pipeline as a way it can help the U.S. achieve energy security, which could give Prime Minister Mark Carney leverage in upcoming negotiations over the United States-Canada-Mexico trade agreement.
A spokesperson for Natural Resources Minister Tim Hodgson said Canada is aware of the White House permit issued on Thursday, and remains focused on supporting North American and global energy security while diversifying trade partnerships.
The executive chairman of Canada’s fifth-largest oil company said oil gives Canada “economic hard power” it can use in its dealings with Trump.
“As a result, Canada should be able to negotiate the most favorable trade arrangements with the U.S. in the world,” said Adam Waterous of Strathcona Resources.
This line will be for the sepratists to travel as needed.
Good for Canada, but it would be nice to tell Trump to go to hell.
Rob Wise….. you are joking of course!!
i thaught th U.S. A didn’t need any thing from Canada
HAHAHAHA
so why build the pipeline
Not to worry some climate clown liberals along with a merry band of chugs will figure out how to stop anything from happening.
Ass & elbows up
If Alberta gains independence pipeline construction to the USA will really take off. We will all be rich, no Federal taxes, no GST, no fuel tax, no capital gains tax on retirement income, no carbon tax on businesses.
In bigger news. The president of the USA is a ped0phile and a rapist
What took so long?
@Try This – I’m sure Smith would love to sell it at market value to any number of global markets, but for that to happen we need the Liberals to roll back some legislation and actually approve a project, instead of giving a veto to any one special interest group.
Trump is mostly a clown, but with the stroke of a pen he has done more for Canada than Carney has since that circus of a Liberal leadership race made him PM.
I wouldn’t warm up your lifted trucks yet…Mr.Trump signs those agreements all day long…
Can’t stand Trump, but he’s done more for Canada with this one single pipeline approval than Carney has done in over a year in office.
Que the damn natives to immediately go cry in court about prosperity. These people really do want us to go back to horse and buggy.
Smallpox never worked
We’re decades past due for upgraded refineries. Unfortunately, we’ll never get to build a pipeline in any other direction. Alberta, strong & free! Vote yes, folks!
@gman Alberta doesn’t import O&G, we only export.
Then sell it back to us for 10x the amount.
Elbows down ass up
Remember when Biden cancelled Keystone XL on day one of his residency?
Why is Smith still trying to give our oil away to the US? – Refine it here, then sell it to them so we make the money.