South Bow, the Canadian pipeline company that was behind Keystone XL, is partnering with a U.S. company, Bridger Pipeline, for the proposed project.
U.S. President Donald Trump has signed an executive
order authorizing a proposed project to transport Canadian oil into the United
States, reviving part of the cancelled Keystone XL pipeline.
South Bow, the Canadian pipeline company that was behind
Keystone XL, is partnering with a U.S. company, Bridger Pipeline, for the
proposed project. South Bow is also considering reviving some of the pipeline
that was already built in Alberta and Saskatchewan.
Bridger Pipeline is seeking to construct a 1,038-kilometre
pipeline, which would begin near the Canada–U.S. border in Montana and end in
Wyoming.
The pipeline could increase Canada’s crude oil exports to
the United States by more than 12 percent.
The new proposal involves a different route through the
United States than the previous Keystone XL pipeline project, which was
cancelled by then-U.S. President Joe Biden in 2021. It will use some of the
previously built pipe on the Canadian side, where the Keystone XL line is
already fully permitted.
Keystone XL was first announced in 2005, and was designed
to carry 830,000 barrels of crude a day from Alberta to Nebraska. It would have
then connected with the original Keystone pipeline that brings oil to Gulf
Coast refineries.
The announcement comes as oil prices have hit more than
US$110 a barrel due to the Iran war, which led to Tehran effectively shutting
down the Strait of Hormuz, affecting around a fifth of all global oil transport
and significant volumes of fertilizer.
Canada’s Natural Resources Minister Tim Hodgson had said in
March that Canadian and U.S. officials recently spoke about a revival of
Keystone XL. He said the proposal was discussed by him, Canadian Ambassador to
the United States Mark Wiseman, U.S. Energy Secretary Chris Wright, and U.S.
Secretary of the Interior
Doug Burgum.
Hodgson did not say whether the U.S. administration had
decided to support the project, but said those officials were “thoughtfully
looking at all of the options to make sure the world has the oil it needs to
function.”
Following his inauguration in January 2025, Trump moved to
reverse the cancellation of the Keystone XL pipeline project, and promised easy
regulatory approvals for its resurrection.
Alberta Premier Danielle Smith said in a statement that the
new pipeline would deliver more than half a million barrels of oil to U.S.
refineries. She said the federal government’s recent lifting of the oil and gas
emissions cap will allow the province to “produce more of the oil that the
world needs.”
“The U.S. is our most important trading partner, and we
will continue to deliver energy to help secure North American energy
dominance,” she said.
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