U.S. President Donald Trump officially approved a project on Thursday that aims to transport Canadian oil across the border, marking an initiative to revive portions of the scrapped Keystone XL pipeline. South Bow, the Canadian pipeline firm responsible for the canceled Keystone XL project, has joined forces with U.S.-based Bridger Pipeline for this new venture.
The proposed project involves the potential revival of sections of the already constructed line in Alberta and Saskatchewan. Bridger Pipeline is actively pursuing the construction of a 1,038-kilometer pipeline starting near the U.S.-Canada border in Phillips County, Mont., and extending to Guernsey, Wyo.
During the signing of the order, White House Staff Secretary Will Scharf briefed President Trump on the nature of the project, likening it to the previous Keystone XL pipeline. Trump acknowledged the potential job creation, expressing his approval of the initiative.
This new proposal, if realized, could boost Canada’s crude exports to the U.S. by more than 12%. It charts a different course through the U.S. compared to the prior Keystone XL plan, which was halted by former President Joe Biden in 2021 following extensive Indigenous and environmental opposition. Nevertheless, the new project aims to utilize pre-existing infrastructure on the Canadian side, where the Keystone XL line has already obtained full permits.
South Bow is currently assessing the Prairie Connector project, an expansion of its Canadian assets that leverages existing infrastructure to enhance market access for Canadian crude oil. The project is in its early stages and is subject to ongoing discussions with stakeholders, regulatory processes, and evaluations.
Established in 2024 as a result of TC Energy’s spin-off of its oil pipeline division, South Bow continues to explore opportunities driven by market dynamics. According to James Coleman, an energy law expert at the University of Minnesota, the increasing oil production in Canada and global oil transportation challenges contribute to the rationale behind such projects.
Although North America is well-equipped to address energy crises, Coleman cautioned about potential legal obstacles akin to those faced by the Keystone XL project. State regulatory approvals will be crucial for the advancement of this new pipeline proposal.
The issuance of the presidential permit coincides with ongoing trade tensions between Canada and the U.S., as the two nations prepare to negotiate a new North American trade agreement. The revival of discussions around the pipeline underscores the strategic importance of Canada’s energy resources in the broader North American context.