Key facts
- President Donald Trump indicated the Keystone XL oil pipeline might be revived.
- The original Keystone XL project was proposed to carry 830,000 barrels per day from Alberta to Oklahoma and the Gulf Coast.
- Environmental and Indigenous groups opposed the pipeline.
- TC Energy's successor, South Bow, is considering a new pipeline called Prairie Connector.
- The Prairie Connector project would have a capacity of 550,000 barrels per day and use some existing Keystone XL pipe.
- A decision on Prairie Connector is expected in 2027, contingent on a durable U.S. presidential permit.
President Donald Trump's recent social media post suggesting the Keystone XL oil pipeline could be revived has garnered attention amid ongoing U.S.-Canada trade talks. The proposed pipeline, intended to transport 830,000 barrels per day of crude oil from Alberta's oil sands to U.S. hubs, faced significant opposition from environmental and Indigenous groups.
Originally rejected by the Obama administration, the project was revived by Trump during his presidency. However, U.S. President Joe Biden revoked a crucial permit for the U.S. portion of the pipeline in 2021, leading to its cancellation. TC Energy, the original developer, incurred substantial losses and subsequently spun off its crude pipeline business into a new entity named South Bow, shifting its focus to natural gas.
Amid forecasts of increased Canadian oil production, South Bow, in partnership with Bridger Pipeline, has proposed a new project called Prairie Connector. This pipeline would have a capacity of 550,000 barrels per day, running from Alberta to Wyoming, and would utilize some of the previously installed Keystone XL pipe on the Canadian side. South Bow plans to make a decision on the Prairie Connector project in 2027, with its CEO emphasizing the need for a "durable" U.S. presidential permit before proceeding.
The Keystone XL project has also played a role in trade discussions. Canadian Prime Minister Mark Carney reportedly raised the possibility of reviving the project during trade talks with Trump last October as a potential area for bilateral cooperation. Trump's recent posts about Keystone XL occurred shortly after he announced a reprieve on additional tariffs for Canada.