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U.S. President \u200cDonald \u200bTrump on Thursday \u200bsigned an order \u200bauthorizing a proposed project to transport Canadian oil across the border as part of an effort to revive parts of the cancelled Keystone XL pipeline.<\/p>\n
South Bow, the Canadian pipeline company behind the cancelled Keystone XL pipeline, is partnering with U.S. company Bridger Pipeline on the proposed project.<\/p>\n
South Bow is considering reviving some of the already-built line in Alberta and Saskatchewan.<\/p>\n
Bridger Pipeline is pursuing construction of a potential 1,038-kilometre pipeline beginning near the U.S.-Canada border in Phillips County, Mt., and transiting to Guernsey, Wy.<\/p>\n
As Trump signed the order, White House Staff Secretary Will Scharf described to the President how “This is a trans border pipeline similar to the old Keystone XL pipeline.”<\/p>\n
Trump’s response included saying “A lot of jobs too. A lot of jobs. OK, very good.”<\/p>\n
![\"A](\"https:\/\/www.newsbeep.com\/ca\/wp-content\/uploads\/2026\/04\/1777585929_617_default.jpg\")
A section of pipe is placed in a trench near Oyen, Alta, as part of the Keystone XL project in September, 2020. (Kyle Bakx\/CBC)<\/p>\n
The pipeline could increase Canada’s crude \u200bexports to the U.S. by more than 12 per cent if it goes ahead. <\/p>\n
The new proposal involves \u2060a different route \u2060through the U.S. than the \u200cprevious Keystone XL pipeline project, which was canceled by former U.S. president Joe Biden in 2021 after years of Indigenous and environmental opposition. <\/p>\n
However, it will use \u2060some of the previously built pipe on the Canadian side, where the Keystone XL line is already fully permitted. In 2021, about 150 kilometres of pipe were installed in Alberta.<\/p>\n
“South Bow continues to evaluate the Prairie Connector\u00a0project, a potential expansion of its Canadian asset base\u00a0that would\u00a0leverage\u00a0existing infrastructure and\u00a0permitted\u00a0corridors to improve market access for Canadian crude oil,” said South Bow spokesperson\u00a0Solomiya Martoiu, in an emailed statement.<\/p>\n
“The\u00a0Prairie Connector\u00a0project\u00a0remains\u00a0in\u00a0early stages\u00a0and is subject to ongoing commercial, stakeholder and rightsholder\u00a0discussions, regulatory\u00a0processes\u00a0and evaluation,” Martoiu said.<\/p>\n
South Bow was \u200ccreated in 2024 by former Keystone XL proponent TC Energy to take over its oil pipeline business. <\/p>\n
“One reason we see it keep coming back is that there are some market realities that make a lot of sense,” said James Coleman, an energy law professor at the University of Minnesota, in an interview with CBC News.<\/p>\n
“There are continued increases in oil production in Canada. We are seeing right now the biggest threats to waterborne traffic of oil that we’ve ever seen in the world,” he said.<\/p>\n
North America is uniquely well positioned to deal with the energy crisis caused by the U.S. war in Iran because of the continent’s mix of heavy oil, light oil, refining capacity, and natural gas, he said.<\/p>\n
Still, Coleman warned there could be legal challenges to this proposal, similar to the lawsuits against Keystone XL.<\/p>\n
The pipeline could transport about 550,000 barrels of Canadian crude per day to the U.S.<\/p>\n
“Canada has benefited for decades from having fully integrated infrastructure tied to the United States, the largest oil and gas consuming market on the planet,” said\u00a0Lisa Baiton, CEO of the\u00a0Canadian Association of Petroleum Producers, in an emailed statement.\u00a0<\/p>\n
Baiton said the association supports “any new capacity that is commercially viable\u00a0and can move Canadian energy reliably.”<\/p>\n
State regulatory permits will still be required for the project to proceed.<\/p>\n
“We are aware of the issuance of permits to Bridger Pipeline. The Government of Canada remains focused on strengthening Canada\u2019s position as an energy superpower, supporting North American and global energy security, and advancing the diversification of our trade partnerships,” said Charlotte Power, a spokesperson for natural resources minister Tim Hodgson, in an emailed statement.<\/p>\n
![](\"https:\/\/www.newsbeep.com\/ca\/wp-content\/uploads\/2026\/02\/1772013731_429_default.jpg\")
Pipe ready to be used for the construction of the Canadian leg of the Keystone XL pipeline in Alberta in September 2020. (Kyle Bakx\/CBC)<\/p>\n
The presidential permit comes at a time when Canada and the U.S. are facing an ongoing trade war and will soon begin negotiations on a new North American trade agreement.<\/p>\n
Last October, Prime Minister Mark Carney\u00a0\u00a0floated the idea of Keystone XL to Trump<\/a>\u00a0during a meeting at the White House.<\/p>\n