US President Donald Trump's post on social media regarding the Keystone XL pipeline reignited interest, as the US and Canada are engaged in trade negotiations and seeking areas of cooperation in the energy sector.
What is Keystone XL
Keystone XL was a proposed oil pipeline approximately 1,900 kilometers long, designed to transport 830,000 barrels of crude oil daily from northern Alberta, Canada, to Cushing, Oklahoma, and subsequently to refineries along the Gulf Coast. The project had sparked intense reactions from environmental organizations and indigenous groups. It was initially rejected by President Barack Obama, while Donald Trump revived it during his first presidential term. However, its construction was suspended, as President Joe Biden revoked the critical federal permit required for its implementation in 2021.
Major losses and TC Energy's shift
According to Reuters, Canadian company TC Energy, which was behind the project, suffered significant financial losses following the cancellation of Keystone XL and subsequently shifted a larger portion of its operations to the natural gas sector. Donald Trump, however, has expressed the desire to complete the pipeline expansion. Canada represents one of the most important suppliers of crude oil to the US, making energy infrastructure between the two nations particularly vital within the framework of their broader trade relations.
The new Prairie Connector plan
Despite TC Energy having previously stated that it had put Keystone XL behind it, the company has now proposed a new project, the Prairie Connector pipeline. The new plan foresees the transport of approximately 550,000 barrels of oil daily from Alberta to Wyoming, utilizing part of the existing infrastructure that had been constructed under Keystone XL. The company is expected to make a decision in 2027 regarding the further advancement of the Prairie Connector. The decision will depend, among other factors, on securing the stability of the required US presidential permit.
On the Trump–Carney negotiation table
The prospect of reviving the project was at the center of trade talks between Donald Trump and Canadian Prime Minister Mark Carney. Keystone XL, or more broadly the development of new energy infrastructure between the two countries, was proposed as a potential area of cooperation at a time when Washington and Ottawa are attempting to redefine their commercial and economic ties.
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