Keystone XL pipeline revival discussed amid U.S.-Canada trade talks

U.S. President Donald Trump has renewed interest in the Keystone XL oil pipeline, suggesting the project “may be awoken from the grave.” This development comes amid ongoing U.S.-Canada trade discussions.

The original Keystone XL project was designed to transport 830,000 barrels of oil per day from northern Alberta to Cushing, Oklahoma, and the Gulf Coast. While the project was revived during Trump’s first term, it was halted after President Joe Biden revoked a critical permit in 2021. The original developer, Canada’s TC Energy, suffered significant losses following the cancellation and subsequently spun off its crude pipeline business into a new entity called South Bow.

Although South Bow previously indicated it had moved on from the Keystone project, the company is now working with U.S.-based Bridger Pipeline on a new proposal called Prairie Connector. This project aims to transport 550,000 barrels per day from Alberta to Wyoming and may utilize some existing Keystone XL infrastructure installed on the Canadian side of the border. A decision regarding the Prairie Connector is expected in 2027, depending on the stability of necessary U.S. presidential permits.