Mark Carney's Pipeline Diplomacy: A Keystone Revival?

Canadian PM Mark Carney hinted at South Bow's plan to revive the Keystone XL pipeline during a meeting with U.S. President Trump, aiming to bolster Canadian oil exports and ease trade tensions. While South Bow evaluates expansion options, Carney's office and the Canadian government remain officially uninvolved.

In a strategic move to reinforce Canadian oil exports and alleviate trade tensions, Canadian Prime Minister Mark Carney discussed possible revival plans for the Keystone XL pipeline with U.S. President Donald Trump. The conversation took place during a White House meeting in October, where Carney underscored the significance of energetically amending trade relations with Canada's southern neighbor.

Despite South Bow's previous stance of having 'moved on' from the Keystone XL project, Carney's awareness of their talks with potential U.S. partners to resurrect part of the pipeline suggests a renewed interest. With pressures from Canadian tariffs on various goods mounting, Carney's suggestion aligns with efforts to ameliorate economic strains between the two nations.

While the Canadian government distances itself from direct involvement in South Bow's proposals, discussions on energy are poised to be a focal point in the forthcoming reviews of the Canada-United States-Mexico trade agreement (CUSMA). Concurrently, U.S. company Bridger Pipeline's new proposal for a cross-border crude oil pipeline further intensifies the discourse on energy infrastructure between Canada and the U.S.

(With inputs from agencies.)