By Meclee - Own work, CC BY-SA 3.0, https://commons.wikimedia.org/w/index.php?curid=20363087
DUBUQUE, Iowa — U.S. President Donald Trump is raising the possibility of reviving the cancelled Keystone XL pipeline, claiming Canada would build and pay for the project as part of a potential trade agreement between the two countries.
Trump made the comments Sunday after speaking with Prime Minister Mark Carney about a broader trade deal.
“They’re going to build the Keystone pipeline. They’re going to pay for it. … We’re going to give them the route, and it’s largely been determined,” Trump told reporters.
Carney confirmed the two leaders had spoken, describing their conversation as part of ongoing discussions toward a mutually beneficial trade agreement.
However, no formal agreement has been announced, and Carney has not indicated Canada has committed to reviving Keystone XL.
The proposed pipeline was designed to transport 830,000 barrels of crude oil per day from northern Alberta’s oilsands through the United States to refineries along the Gulf Coast.
Originally proposed in 2008 by TransCanada, now known as TC Energy, Keystone XL was rejected by former president Barack Obama in 2015, revived by Trump in 2019 and cancelled again in 2021 after former president Joe Biden revoked a key permit.
TC Energy subsequently spun off its crude oil pipeline operations into South Bow, which is now pursuing a separate project.
The proposed Prairie Connector pipeline, developed with American company Bridger Pipeline, would carry 550,000 barrels of oil per day from Alberta to Wyoming, using some infrastructure originally installed for Keystone XL.
South Bow expects to decide in 2027 whether to proceed with that project.
Trump previously suggested in August that Keystone XL “may be awoken from the grave.”
Canada exports more than 90 per cent of its crude oil production to the United States.
It remains unclear how Keystone XL could be revived or whether Trump’s proposal would affect South Bow’s plans.
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