US, Canada consider reopening Keystone XL pipeline in trade talks - FT

[Three Pipeline Reflecting Blue Sky]
zorazhuang/iStock via Getty Images

The Canadian government is considering pursuing a restart [https://www.ft.com/content/953e5e23-30f9-4ce8-a8aa-e976a6fbeb64] of the Keystone Pipeline as part of a grand bargain to ease some of President Trump's tariffs on products such as steel and aluminum, Canada's energy minister Tim Hodgson told the _Financial Times_ on Thursday.

"We are open to exploring Keystone" and to "discussing the advancement of continental energy security, if we also address the irritants for steel and aluminium,” Hodgson said, also noting that increasing U.S. access to Canadian oil sands could benefit “continental energy security," given that many American refineries were set up to process the heavy crude.

The Keystone XL project, first proposed more than 15 years ago, was an extension to an existing system and would have shipped 830,000 bbl/day of heavy crude from Alberta to refineries on the U.S. Gulf coast, but was killed by the Biden administration after becoming a lightning rod for environmental concerns.

A U.S. official confirmed to _FT_ that Trump might be interested in reviving Keystone XL, but cautioned it was "not a silver bullet" to resolve the trade dispute between the U.S. and Canada.

Canadian developer TC Energy (TRP [https://seekingalpha.com/symbol/TRP]) terminated the project shortly after Biden's cancellation; South Bow (NYSE:SOBO [https://seekingalpha.com/symbol/SOBO]), a TC Energy spinoff that operates the Keystone pipeline system, said it was not privy to the talks between the U.S. and Canadian governments.

MORE ON SOUTH BOW

* South Bow Q2 2025 Earnings Call Transcript [https://seekingalpha.com/article/4811403-south-bow-corporation-sobo-q2-2025-earnings-call-transcript]
* South Bow: A Very Generous Dividend From An Oil Pipeline Company [https://seekingalpha.com/article/4810237-south-bow-very-generous-dividend-from-oil-pipeline-company]
* SOBO: A Stable Oil Pipeline Dividend Play [https://seekingalpha.com/article/4789235-sobo-a-stable-oil-pipeline-dividend-play]