Alberta-to-US oil pipeline project advances with proposed new link to Oklahoma

CALGARY — A proposed pipeline network designed to move more Alberta crude into US markets has taken another step forward, with Calgary-based South Bow and US-based Bridger Pipeline announcing plans to jointly develop a new oil pipeline connecting Guernsey, Wyoming, to Cushing, Oklahoma.The companies confirmed Tuesday they are working together on the project, which would follow a corridor previously acquired from another company. South Bow and Bridger said their immediate focus is engaging with landowners and communities along the proposed route.Reuters reports the proposed line would serve as the third segment of a larger system intended to transport Alberta crude to the key US oil storage and trading hub in Cushing.According to a recent research note from JP Morgan, a joint venture involving South Bow and Bridger acquired the right-of-way associated with the former Liberty Pipeline project from Tallgrass Energy. The Liberty Pipeline was ultimately cancelled after being proposed to transport oil from the Rocky Mountain region and North Dakota's Bakken formation to Oklahoma.Neither South Bow nor Bridger confirmed details of the reported acquisition, while Tallgrass Energy did not immediately respond to requests for comment..South Bow wary of reviving Keystone XL without stronger US permit guarantees.The new proposal complements the companies' previously announced Prairie Connector project, a planned Alberta-to-Wyoming pipeline that could boost Canadian crude exports to the United States by more than 12%.The Prairie Connector received a major boost earlier this year when US President Donald Trump signed a cross-border permit authorizing the project. The development has been viewed as a partial revival of the long-abandoned Keystone XL concept, which was effectively terminated after former US President Joe Biden revoked its permit in 2021.While Prairie Connector would follow a different route than Keystone XL through the US, South Bow's portion of the project would make use of approximately 150 kilometres of pipeline already constructed in Canada but never placed into service. That infrastructure would connect with Bridger's proposed Montana pipeline before extending roughly 1,038 kilometres to Guernsey, Wyoming.Energy analyst Matthew Lewis said the proposed Wyoming-to-Cushing segment is essential to the broader plan."The third leg is an imperative piece of the overall project. There is currently no significant oil egress capacity out of that Wyoming/Colorado area to major hubs like Cushing. Thus, you need a major new build project to carry that oil from Wyoming to an oil hub," Lewis said.According to filings with the Canada Energy Regulator, South Bow intends to resume work on its portion of Prairie Connector during the second quarter of 2027, with the pipeline expected to enter service in the fourth quarter of 2028.The company said last month it had secured the shipping commitments required to move the project forward, marking another milestone for a proposal aimed at expanding export capacity for Canadian oil producers.

Alberta-to-US oil pipeline project advances with proposed new link to Oklahoma

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