Resuming the Keystone XL Oil Pipeline Could Spark Renewed Debate

Montana Pipeline Proposal May Spark Keystone XL Revival

Bridger Pipeline has submitted plans to Montana authorities for a new pipeline capable of transporting 550,000 barrels of Canadian crude oil daily to Wyoming. The proposed route would begin close to the location originally designated for the Keystone XL pipeline, raising the possibility of breathing new life into the long-stalled project.

The planned path closely mirrors much of the Keystone XL’s original trajectory, which could allow the use of existing infrastructure and previously approved corridors. This overlap may minimize the need for new construction. South Bow Corp., a spin-off from Keystone XL’s former developer TC Energy (SOBO +0.89%, TRP +0.48%), is also exploring ways to expand its pipeline system to connect with U.S. networks.

There is renewed political interest on both sides of the border. Former U.S. President Donald Trump has advocated for the pipeline’s return, and Canadian Prime Minister Mark Carney has voiced support during discussions with American officials. These signals suggest momentum is building for a fresh Keystone XL initiative.

Reasons Behind the Proposal

Bridger Pipeline’s initiative aims to streamline the movement of Canadian oil by leveraging the infrastructure originally built for Keystone XL. This approach could lower expenses and speed up regulatory approvals. It also fits with Canada’s ongoing push to boost oil exports to the U.S., especially as trade tensions have recently intensified.

South Bow Corp. is considering similar tactics, hoping that using established assets will help avoid some of the regulatory and environmental challenges that previously hindered the Keystone XL project. This reflects a wider industry movement to maximize the value of legacy infrastructure.