New Potential for Transnational Oil Pipeline
Miles of unused Keystone XL pipeline has been dormant in North Dakota since 2014. However, new discussions about a potential oil pipeline between Canada and the United States are emerging, with the revival of the original concept at the forefront.
South Bow, a descendant of TC Energy—formerly TransCanada—and Texas-based Energy Transfer are exploring the proposed initiative. Both companies are considering a joint venture called the “Big Sky Pipeline System.” While still in the early stages, it has the support of both United States and Canadian political officials, who have expressed support for this new crude pipeline spanning from Canada to the U.S., highlighting its potential significance.
The Big Sky Pipeline plans to connect the existing infrastructure from Alberta to North Dakota, utilizing as much existing infrastructure as possible and mitigating any previous challenges. Before constructing a cross-border crude oil pipeline, potential developers such as South Bow and Energy Transfer must gauge market interest and receive presidential approval, among other permissions.
The revival of the Keystone XL pipeline, or a pipeline in similar stature, would significantly improve North American energy infrastructure. Midstream companies’ initiatives would enhance efficiency, address past challenges, and strengthen transnational relationships, especially during a trying political time. Additionally, these conversations highlight a renewed interest in expanding overall energy infrastructure after a previously hostile administration signaled a move away from fossil fuels.