Trump Signs Permit for Oil Pipeline Echoing Keystone XL

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(Bloomberg) — US President Donald Trump on Thursday signed a presidential permit authorizing the Bridger Pipeline expansion project meant to carry Canadian crude to Wyoming — the latest in years of back-and-forth over oil pipelines linking the countries. 

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The project is a quasi-revival of the canceled Keystone XL pipeline that would have transported Canadian oil sands crude to the US and drew widespread opposition from environmentalists. Former President Barack Obama rejected the project in 2015. Trump sought to revive it during his first term, and then former President Joe Biden withdrew a key permit for it in 2021. 

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With the permit, the project has effectively cleared a key US federal regulatory hurdle. 

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Under Trump’s authorization, Bridger is able to construct, connect and operate pipeline border facilities at the US-Canada border in Phillips County, Montana, enabling the transport of crude oil and a host of petroleum products. Authorized facilities include not just the pipeline extending from the US-Canada border but also a shut-off valve and pumping station within 2,000 feet of it. 

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Trump predicted the construction would create “a lot of jobs.”

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The permit comes as the US and Canada are locked in trade disputes over Trump’s imposition of tariffs on key imports including vehicles and steel as well as an ongoing review of the North American trade pact. The signing snuffs out any fear that the cross-border venture could get swept up in broader tensions.

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Charlotte Power, a spokesperson for Canadian Energy Minister Tim Hodgson, said: “We are aware of the issuance of permits to Bridger Pipeline. The Government of Canada remains focused on strengthening Canada’s position as an energy superpower, supporting North American and global energy security, and advancing the diversification of our trade partnerships.”

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Bridger Pipeline LLC had sought permission to construct and operate the 36-inch pipeline that’s meant to carry some 550,000 barrels per day of Canadian crude to Guernsey, Wyoming. The route would originate near Keystone XL’s planned border crossing, raising the prospect that parts of the long-stalled project could be re-purposed.

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South Bow Corp., which was spun off in 2024 from TC Energy Corp., had been considering an expansion of its pipeline system. 

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“South Bow continues to evaluate the Prairie Connector project, a potential expansion of its Canadian asset base that would leverage existing infrastructure and permitted corridors to improve market access for Canadian crude oil,” spokesperson Solomiya Martoiu said in a statement. “The concept behind the Prairie Connector is to move crude oil from Hardisty, Alberta to the Canada-US border, where it could connect with downstream pipeline systems. 

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Martoiu added: “The Prairie Connector project remains in early stages and is subject to ongoing commercial, stakeholder and rights-holder discussions, regulatory processes and evaluation.”