WATCH: Trump says Keystone XL pipeline could be part of US-Canada trade deal

CALGARY — US President Donald Trump has said his administration has a “concept” of a new trade deal with Canada and the Keystone XL pipeline could be part of it.“[Canada's] gonna build the Keystone Pipeline. They’re gonna pay for it, and they’re gonna pay for all of it,” Trump told reporters Sunday.“And we’re gonna give them the route, and it’s largely been determined, but they’ll build the Keystone Pipeline.”.Trump did not go into the specifics of the project or say who would finance construction.Prime Minister Mark Carney said in a post on X earlier on Sunday that his weekend exchange with Trump had “built on recent constructive discussions on the outlines of a mutually beneficial trade deal.”He added that the proposed agreement would create jobs and improve affordability for Canadians while also respecting Canada’s culture and sovereignty..“Our teams will now be working in the coming weeks to deliver that outcome,” Carney said.In recent months, Canada and the US have imposed billions of dollars in tariffs on each other’s goods, escalating tensions between the two trading partners.However, Trump recently said he expected an agreement soon, although Canadian officials had previously reported limited progress in the negotiations despite efforts by both sides to ease tariffs on automobiles and steel.The possibility of reviving Keystone XL has come up in previous trade negotiations between the two countries.In August, the New York Times reported that Carney had backed away from an offer to cooperate on the project as talks broke down with Trump.At the time, the prime minister said that the terms offered by the Americans weren’t good enough to revive Keystone, as Canadian negotiators sought a better deal for automobiles, electric vehicles and metal products, while their American counterparts pushed Canada to align its steel tariffs on other countries with Washington’s policies..WIECHNIK: Trump revives Keystone XL — Canada should build it and the West Coast pipeline.The original Keystone XL project was first proposed by Calgary-based TC Energy in 2008 and was designed to carry up to 830,000 barrels of crude oil per day from Hardisty, Alberta, to Steele City, Nebraska, for onward shipment to US Gulf Coast refineries.In 2010, Canadian regulators approved the project, but then-US President Barack Obama later rejected it amid environmental opposition.The project was revived by Trump in 2017 after he first took office, but it continued to face challenges.Construction on Keystone finally began in 2020, before the Biden administration revoked the project’s presidential permit in 2021, causing TC Energy to formally terminate the project later that year.Since then, Calgary-based South Bow — which took over TC Energy’s crude oil pipeline business — has been pursuing a different route to US markets in partnership with American pipeline operator Bridger Pipeline LLC.The company’s proposed Prairie Connector pipeline would follow the former Keystone XL corridor through Alberta and Saskatchewan, reusing roughly 150 kilometres of already installed pipe and two pump stations.On the US side, Bridger’s proposed line would carry up to 550,000 barrels per day to Guernsey, Wyoming.The companies are jointly developing a separate line, Liberty Bridge, to connect Guernsey with the oil storage hub at Cushing, Oklahoma.In April, Trump granted the Bridger Pipeline Expansion a presidential permit for its Montana border crossing, but other regulatory approvals are still required. South Bow has already secured several 20-year commitments for 465,000 barrels per day from shippers and is targeting a mid-2027 final investment decision.

WATCH: Trump says Keystone XL pipeline could be part of US-Canada trade deal

Related Stories

Carney says right-wing political shifts in Europe, U.S. will not derail trade push

Trump eases Canada tariffs amid pressure from Republican senator

QUESNEL: The anti-American trap is ruining Canada

UPDATED: Trump eyes ‘massive’ Belarus potash deal amid Canada trade uncertainty