U.S. President Donald Trump signed an executive order on April 30, authorizing Bridger Pipeline LLC to construct a 1,038-kilometer pipeline that will transport Canadian crude from the U.S.-Canada border in Phillips County, Montana, to Guernsey, Wyoming. The project, which could move up to 550,000 barrels per day, marks a significant step toward reviving elements of the canceled Keystone XL pipeline and boosting Canada’s crude exports to the U.S. by over 12%.
This new pipeline, developed in partnership with South Bow (TSX: SOBO), leverages infrastructure already built for Keystone XL on the Canadian side. South Bow, formed in 2024 by TC Energy to manage its oil pipeline assets, is considering reusing roughly 150 kilometers of pipe installed in Alberta back in 2021. On the U.S. side, Bridger’s proposed route diverges from the original Keystone XL path, which was scrapped by President Joe Biden in 2021 amid fierce environmental and Indigenous opposition.
Trump, speaking after the signing, took a jab at the previous administration’s stance. “Slightly different than the last administration—they wouldn’t sign a pipeline deal,” he said. The permit allows Bridger to build and operate the cross-border segment, though state regulatory approvals in Montana and Wyoming are still pending before construction can begin.
The project, dubbed Prairie Connector in regulatory filings, comes at a tense moment in U.S.-Canada relations. With an ongoing trade war and negotiations for a new North American trade agreement on the horizon, energy exports have emerged as a flashpoint. The pipeline’s approval follows discussions last October between Trump and Canadian Prime Minister Mark Carney, where the idea of resurrecting Keystone XL components was floated during a White House meeting.
Historically, the Keystone XL project, first proposed in 2005, aimed to carry 830,000 barrels daily over 1,897 kilometers from Hardisty, Alberta, to Nebraska, linking to refineries on the U.S. Gulf Coast. Its cancellation left behind unused infrastructure and economic ripple effects, including in towns like Oyen, Alberta, where 1,000 workers were based during construction in 2020.
Bridger’s pipeline could reshape energy flows if completed, with capacity to handle over half a million barrels daily. The project’s fate now hinges on securing state permits, with construction timelines and costs yet to be finalized. As a benchmark, the original Keystone XL faced over a decade of delays before its cancellation, a history that looms over this latest effort.
The authorization lands as Canada’s oil sector seeks new export avenues amid global demand shifts. With the pipeline’s potential to add 12% to current U.S.-bound crude volumes, its completion could lock in a critical supply line by late 2028 if regulatory hurdles are cleared swiftly.
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