South Bow Sees Keystone XL Revival Prospects Rise with North American Policy Shift
South Bow, the company behind a plan to revive the Keystone XL pipeline system, is optimistic about its prospects due to a shift in North American policy favoring energy development. CEO Bevin Wirzba said that since US President Joe Biden canceled the permit for Keystone XL in 2021, the world has changed.
The current war in Iran and ongoing conflict in Ukraine have emphasized the need for energy security, creating a favorable backdrop for South Bow's project. The proposed pipeline would transport up to 55,000 barrels per day of Canadian oil to the US Gulf Coast, with the goal of connecting Alberta to the US market.
The company is considering reviving some of the line that was already built in Alberta and has all necessary Canadian permits. However, the U.S. segment of the pipeline would be built by U.S. partners, not South Bow. A presidential permit would still be required for the proposed new pipeline to cross the Canada-U.S. border.