KEYSTONE XL REVIVAL?: Rumours intensify amid Alberta export constraints

CALGARY — Rumours of the Keystone XL pipeline being revived are once again swirling as reports suggest Prime Minister Mark Carney was aware of oil company South Bow Corp's plans to revive parts of the project when he met with US President Donald Trump in October.According to Reuters, a federal source close to the matter said that Carney knew there would be “some private-sector interest” in bringing portions of the cancelled line back to life.During the meeting, Carney raised the possibility of reviving the Keystone XL oil pipeline from Alberta to the US as part of broader efforts to ease trade tensions between the two countries, as Ottawa was facing pressure over US tariffs on steel, automobiles and other goods.Carney reportedly asked Trump whether he would be open to a renewed Keystone project if it had Canadian backing..Calgary-based South Bow publicly stated in October that it had “moved on” from Keystone XL, though it remained supportive of expanding transportation capacity for Canadian crude to foreign markets.Behind the scenes, however, the company was in discussions with potential US partners about resurrecting part of the former line, according to the Reuters source.In January, regulatory filings from Montana further fuelled speculation as US-based Bridger Pipeline LLC applied to state regulators to construct a 1,038 kilometre pipeline beginning near the US-Canada border in Phillips County, Montana, and running to Guernsey, Wyoming..The Financial Post reported the proposal envisions transporting up to 550,000 barrels per day (bpd) of Canadian crude to the American market.While the filings do not specify what Canadian infrastructure the project would connect to, industry insiders such as RBN Energy analyst Liz Dickens have suggested the proposal could link with the partially constructed Keystone XL system in Alberta, which has sat idle since 2021.“Given the proposed border origin point, the only infrastructure that appears capable of supplying that scale of incremental volume is the partially constructed Keystone XL system in Alberta,” Dickens wrote.Keystone XL was first proposed in 2008 and designed to carry up to 830,000 bpd from Alberta to Nebraska, linking into pipelines serving US Midwest and Gulf Coast refineries.The project caused controversy on both sides of the 49th parallel when its cross-border permit was blocked, revived and then ultimately cancelled after portions of the line had already been put in the ground between Hardisty, Alberta, and the US border.Former owner TC Energy Corp suspended the project in 2021 before selling off its liquids pipeline business to South Bow..GROUNDHOG DAY: Trump pushes for Keystone XL revival despite tariffs and lingering legal battles .Renewed interest in the project now comes as Western Canadian producers once again grapple with export constraints, as Trans Mountain Corp.’s recently expanded pipeline to the BC Coast and Enbridge Inc.’s Mainline system are operating near capacity.Enbridge has already approved a first phase of Mainline expansions adding roughly 150,000 bpd by 2027, with a potential second phase adding another 250,000 bpd by 2028.In a statement to the Western Standard, a spokesperson for South Bow said the company is “evaluating an expansion that would leverage existing infrastructure and permitted corridors in Canada and could connect to downstream pipelines in the United States.”“The concept is in the early stages and South Bow will work with prospective customers, stakeholders and rights holders before sharing further details,” the spokesperson said.Adding to the rumours, an unnamed source told the Western Standard that several landowners in central eastern Alberta around the town of Consort, located roughly 102 kilometres southeast of Hardisty, have been contacted by a land man working for AIM Land Services, allegedly on behalf of South Bow, in connection with potential discussions tied to the revival.The Western Standard has reached out to AIM Land Services for comment.

KEYSTONE XL REVIVAL?: Rumours intensify amid Alberta export constraints

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