Canadian Prime Minister Mark Carney was informed about South Bow’s intentions to resurrect segments of the canceled Keystone XL pipeline to the U.S. before discussing the concept with U.S. President Donald Trump in October, according to a source familiar with the situation. South Bow, the Canadian pipeline company responsible for the scrapped Keystone XL project, is contemplating reviving sections of the already-constructed pipeline in a bid to transport more Canadian oil to the United States.
During a meeting at the White House, Carney broached the topic of reviving the Keystone XL oil pipeline from Alberta to the U.S. with Trump as part of efforts to alleviate trade tensions between the two nations. Facing mounting pressure in Canada to address U.S. tariffs on steel and automobiles, Carney inquired if Trump would be interested in reviving the Keystone project with Canadian support.
At the time, South Bow had expressed that it had moved on from Keystone but was supportive of initiatives to enhance Canadian oil transportation. Carney was aware that South Bow was in discussions with potential U.S. partners to revive a portion of the old Keystone XL line, as confirmed by a federal source. The source indicated Carney’s awareness of private-sector interest in the matter.
The Canadian government is not directly involved in South Bow’s proposal, emphasizing that energy discussions will feature prominently in the upcoming review of the Canada-United States-Mexico trade agreement. Carney’s office declined to comment, directing inquiries to Canada’s Department of Natural Resources. A spokesperson from the department highlighted Canada’s energy resources and ongoing engagement with industry leaders and provinces to align negotiating positions with economic interests.
A spokesperson for South Bow based in Calgary confirmed the company’s evaluation of a proposal leveraging existing infrastructure and permitted corridors in Canada to potentially connect to U.S. crude oil pipelines. Details on the specific infrastructure or potential U.S. partnership were not disclosed.
In a separate development, U.S. company Bridger Pipeline submitted a proposal to Montana regulators outlining plans for a 1,038-kilometer pipeline starting near the U.S.-Canada border in Montana and ending in Wyoming. The proposed pipeline aims to transport up to 550,000 barrels of Canadian crude oil daily to the U.S. market. Bridger Pipeline declined to provide further comments on the proposal.