The Keystone pipeline saga continues, with a new twist that could have significant implications for Canada's energy sector. After years of political battles and legal challenges, the Keystone XL pipeline project was ultimately canceled by then-President Joe Biden in 2021. However, the idea of moving Alberta crude into the U.S. market is back on the table, albeit under a different name and with a different route.
The recent presidential permit signed by Donald Trump allows Bridger Pipeline Expansion LLC to build and operate cross-border facilities at the Canada-U.S. boundary in Phillips County, Montana. While this project is not exactly the same as the Keystone XL, it could utilize some of the existing Canadian infrastructure and serve a similar purpose: transporting more Alberta oil to the U.S. system.
On the Canadian side, South Bow Corp., a TC Energy spinoff, is considering a project called Prairie Connector, which would move crude from Hardisty, Alberta, to the U.S. border. From there, the Bridger pipeline would take over, running through Montana to Guernsey, Wyoming, and eventually connecting to the broader U.S. pipeline network.
This new development has its proponents and critics. For Alberta, the appeal is clear: more pipeline capacity means fewer bottlenecks, potentially stronger prices for Canadian oil, and a more reliable supply to the U.S. market. However, this project is not the West Coast pipeline that Alberta has been advocating for, and it could deepen Canada's dependence on the U.S. market rather than diversifying exports.
The project is still far from a done deal, as it requires permits, customer commitments, and a final investment decision. Nevertheless, it highlights the ongoing challenges and opportunities in Canada's energy sector, where political and environmental factors can significantly impact major infrastructure projects.
