U.S. President Donald Trump has suggested that the Keystone XL pipeline project, previously abandoned by past administrations, could be revived as part of a new trade agreement with Canada. While some industry experts view this announcement as politically motivated, it has sparked discussions on the potential resurrection of the controversial project.
Trump’s social media post announcing a “deal” with Canada and a temporary halt on new tariffs came just before the implementation of new levies on Canadian imports. Referring to his predecessor, Trump mentioned, “The great Keystone XL Pipeline, long ago killed by Sleepy Joe Biden, may be awoken from the grave!”
Former executive Dennis McConaghy believes that Trump’s mention of the Keystone XL project could impact Prime Minister Mark Carney’s decision-making in the coming days amidst ongoing trade negotiations. Since imposing tariffs on Canadian goods in 2025, Trump has consistently emphasized the self-sufficiency of the U.S. economy, questioning the necessity of imports from Canada.
However, experts like Carlo Dade caution against premature optimism regarding the revival of Keystone XL, citing potential political and environmental hurdles. Valérie Beaudoin suggests that while Carney may find it easier to greenlight the project, uncertainties surrounding future administrations could deter potential investors.
The Keystone Pipeline System, owned by South Bow Corp., plays a significant role in Canada’s crude oil exports to the U.S. Despite challenges faced by the project in the past, discussions around its revival have resurfaced, with Trump expressing support for its completion.
South Bow’s involvement in the Prairie Connector project, utilizing parts of the Keystone XL pipeline, aims to enhance Canada’s crude oil exports to the U.S. market. The company’s CEO, Bevin Wirzba, highlights the long-term demand for Canadian crude in the U.S. and the potential value the project could add if approved.
The future of the Keystone XL project remains uncertain, with ongoing discussions and considerations surrounding its feasibility and impact on cross-border trade relations.