Canadian Company Proposes Reviving Parts of Keystone XL Pipeline

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A Canadian company called South Bow is proposing to revive parts of the cancelled Keystone XL oil pipeline project. The new plan involves a different route through the U.S. than the previous Keystone XL project. South Bow, which was set up by former Keystone XL proponent TC Energy, is considering reviving some of the line that was already built in Alberta and has all necessary Canadian permits. However, the proposal would still require a presidential permit from the U.S. and the construction of additional pipelines to connect to U.S. refining hubs.

Why it matters

The proposed project could increase Canada's crude oil exports to the U.S. by more than 12% if approved, providing a boost to Canada's energy industry. However, the plan is likely to face opposition from environmental and Indigenous groups, similar to the original Keystone XL project.

The details

South Bow's potential U.S. partner, Bridger Pipeline, has filed a proposal with Montana regulators to build a 645-mile pipeline capable of transporting up to 550,000 barrels per day from the U.S.-Canada border to Guernsey, Wyoming. But Guernsey is not an end market for crude, so additional pipelines would need to be built to transport the oil to refining hubs like Cushing, Oklahoma and the U.S. Gulf Coast. Gaining permits and avoiding environmental litigation for the Guernsey-to-Steele City, Nebraska segment is seen as the biggest challenge.

• In October 2026, Canadian Prime Minister Mark Carney discussed the pipeline's revival with former U.S. President Donald Trump.
• Bridger Pipeline recently filed its proposal with Montana regulators.

What they’re saying

What’s next

The proposed project would require a presidential permit from the U.S. government and additional regulatory approvals before it could move forward.