Canadian Prime Minister Mark Carney was informed about South Bow’s intentions to resurrect sections of the scrapped Keystone XL pipeline to the United States before he proposed the idea to U.S. President Donald Trump in October, as per a reliable source briefed on the situation. South Bow, the Canadian pipeline company responsible for the abandoned Keystone XL project, is contemplating reactivating some of the previously constructed pipeline segments in an expansion initiative aimed at facilitating more Canadian oil transportation to the U.S. During Carney’s meeting with Trump at the White House, he broached the possibility of reviving the Keystone XL oil pipeline from Alberta to the United States, as part of his efforts to mitigate trade tensions between the two nations. Carney, facing mounting pressure in Canada to address challenging U.S. tariffs on steel, automobiles, and other commodities, inquired whether Trump would be interested if the Keystone project was reinstated with Canadian backing. At that time, South Bow had indicated that it had moved past the Keystone project but expressed support for endeavors to enhance the movement of Canadian oil.
Carney was aware at that point that South Bow was engaging in discussions with potential U.S. partners to revive a section of the old Keystone XL pipeline, as disclosed by a federal source familiar with the matter. The source, speaking on condition of anonymity, emphasized that Carney had knowledge of private-sector interest in the project. The Canadian government has no direct involvement in South Bow’s proposal, although energy discussions will play a significant role during the forthcoming review of the Canada-United States-Mexico trade agreement (CUSMA). A spokesperson for Carney’s office refrained from commenting, redirecting inquiries to Canada’s Department of Natural Resources. In response, Natural Resources spokesperson Charlotte Power highlighted Canada’s status as an energy powerhouse, emphasizing ongoing engagements with industry leaders and regional authorities to ensure Canada’s economic interests are represented in the CUSMA review.
A spokesperson from South Bow, headquartered in Calgary, confirmed via email to Reuters that the company is assessing a plan leveraging its existing infrastructure and authorized corridors in Canada to potentially link up with crude oil pipelines in the U.S. However, specifics regarding the infrastructure to be utilized or the U.S. company for partnership were not disclosed. Meanwhile, U.S.-based Bridger Pipeline recently submitted a proposal to Montana regulators outlining a potential 1,038-kilometer pipeline construction starting near the U.S.-Canada border in Phillips County, Mont., and extending to Guernsey, Wyo. The proposed pipeline, according to Bridger’s application, aims to transport up to 550,000 barrels of Canadian crude oil daily to the U.S. market. Bridger declined to provide additional comments on the matter.
