Canadian Pipeline to U.S. Nears Key Commitments for Crude Transport

Overview of the Pipeline Project#

A proposed pipeline aimed at transporting Canadian crude oil to the United States is getting closer to securing the minimum commitments needed from oil companies to move forward. This information comes from sources familiar with the situation, as reported by Reuters.

Details of the Pipeline#

The pipeline is being developed by South Bow Corp, a Canadian company, in partnership with Bridger Pipeline from the U.S. It will stretch from Alberta, Canada, to Wyoming. If completed, this project could increase Canada's crude oil exports to the U.S. by over 12%, significantly enhancing the capacity for transporting Canadian oil.

Recent Developments#

Recently, President Donald Trump signed an order granting a cross-border permit for this new pipeline. This is notable as the previous Keystone XL oil pipeline permit was revoked by President Joe Biden in 2021, marking the end of the last major pipeline project between the two countries.

Capacity and Commitments#

The new pipeline proposal takes a different route compared to the canceled Keystone XL. It will utilize about 150 kilometers (93 miles) of existing, unused pipeline in Canada, connecting to Bridger’s proposed pipeline in Montana, which will extend approximately 645 miles to Guernsey, Wyoming.

Oil companies have already committed to transporting at least 400,000 barrels of oil per day, which is about 72% of the pipeline's initial capacity of 550,000 barrels per day. According to Bridger's regulatory filings, the pipeline could eventually handle up to 1.13 million barrels per day.