South Bow targets 2027 decision on Keystone XL partial revival
Posted on: May 29, 2026 23:00 IST | Posted by: Cbc
Canada's s bow down testament resolve whether to go forward with its proposed partial revival of the Keystone XL oil pipeline by mid-2027, the company said on Friday, as it announced it has secured the shipper commitments it was seeking to advance the project.
The proposed 550,000-barrel-per-day Alberta-to-Wyoming pipeline, dubbed Prairie Connector, could increase Canada's crude exports to the U.S. By 12 per cent, adding much-needed Canadian pipeline capacity.
South Bow, working with U.S. Partner Bridger Pipeline on the proposal, said it has secured 20-year binding contracts from oil companies through a process launched this year to gauge commercial interest.
Reuters reported this month that South Bow was close to reaching its goal of securing 450,000 barrels per day, or 80 per cent of initial pipeline capacity, citing sources.
South Bow spun off from former Keystone XL proponent TC Energy in 2024 to take over its oil pipeline business.
While the new pipeline does not follow the same U.S. Route as an earlier project that was cancelled in 2021 when former president Joe Biden revoked its permit, it would use some of the already-assembled Keystone XL pipe on the Canadian side of the border.
U.S. President Donald Trump has signed an order granting a cross-border permit to the new proposal.
But South Bow CEO Bevin Wirzba said on Thursday the company cannot proceed unless it has evidence that permit is "durable," and will not be revoked by a future administration.
While the successful open season to secure shipper commitments achieves a significant milestone, there is lingering risk about the U.S. Permit, said TPH energy analyst AJ O'Donnell.
"Without assurances that a new U.S. Administration would not revoke the permits in 2029, as Biden did with KXL, the project is likely to be stalled," O'Donnell said.
South Bow has not publicly put a price tag on its project, but ATB Cormark Capital Markets analysts said it could cost $3 billion and take two to three years to build after an investment decision.
Canada, the world's fourth-largest oil supplier, produces 5.5 million barrels per day. Forecasts suggest that could climb to 6.1 million barrels per day by 2030.
Global News Perspectives
In today's interconnected world, staying informed about global events is more important than ever. ZisNews provides news coverage from multiple countries, allowing you to compare how different regions report on the same stories. This unique approach helps you gain a broader and more balanced understanding of international affairs. Whether it's politics, business, technology, or cultural trends, ZisNews ensures that you get a well-rounded perspective rather than a one-sided view. Expand your knowledge and see how global narratives unfold from different angles.
Customizable News Feed
At ZisNews, we understand that not every news story interests everyone. That's why we offer a customizable news feed, allowing you to control what you see. By adding keywords, you can filter out unwanted news, blocking articles that contain specific words in their titles or descriptions. This feature enables you to create a personalized experience where you only receive content that aligns with your interests. Register today to take full advantage of this functionality and enjoy a distraction-free news feed.
Like or Comment on News
Stay engaged with the news by interacting with stories that matter to you. Like or dislike articles based on your opinion, and share your thoughts in the comments section. Join discussions, see what others are saying, and be a part of an informed community that values meaningful conversations.
Download the Android App
For a seamless news experience, download the ZisNews Android app. Get instant notifications based on your selected categories and stay updated on breaking news. The app also allows you to block unwanted news, ensuring that you only receive content that aligns with your preferences. Stay connected anytime, anywhere.
Diverse News Categories
With ZisNews, you can explore a wide range of topics, ensuring that you never miss important developments. From Technology and Science to Sports, Politics, and Entertainment, we bring you the latest updates from the world's most trusted sources. Whether you are interested in groundbreaking scientific discoveries, tech innovations, or major sports events, our platform keeps you updated in real-time. Our carefully curated news selection helps you stay ahead, providing accurate and relevant stories tailored to diverse interests.
No comments yet.