A Revived Approach to the Keystone XL Pipeline

A modified version of the Keystone XL Pipeline project is being developed to transport crude oil from Alberta, Canada, to Nebraska. This new proposal, sometimes referred to as "Keystone Light," aims to provide a more efficient route for Canadian oil exports.

The project is supported by the Canadian pipeline company South Bow—which was spun off from TC Energy in 2024—and the U.S.-based Bridger Pipeline. The initiative seeks to move up to 550,000 barrels of crude per day, with a target completion date in late 2028 or early 2029.

Strategic Design for Reduced Litigation

To minimize legal challenges, the new proposal features a different route through the United States than the original project. This design is intended to be more litigation-resistant by avoiding Native American reservation lands.

Infrastructure and Land Use

The project's footprint differs significantly from the previous Keystone XL plan. Key features include:

  • More than 70% of the pipeline will be built within existing pipeline corridors.
  • Approximately 80% of the route will be located on private land.
  • The project will reuse idle pipe and utilize previously built pipe on the Canadian side, where Keystone XL is already fully permitted.

Capacity and Economic Objectives

Oil companies have committed to moving at least 400,000 barrels per day, which represents roughly 72% of the pipeline's initial capacity. This will allow an additional 150,000 barrels of Canadian heavy oil to reach the U.S. Midwest and Gulf Coast.

The project also includes provisions to transport American-produced oil from the Bakken formation in Montana and North Dakota. This follows the cancellation of the original Keystone XL by former President Joe Biden in 2021 due to environmental and Indigenous opposition.

Broader Energy Market Trends

The revival of this pipeline's core purpose occurs alongside other regional energy developments. For instance, the Trans Mountain pipeline is planning enhancements that could increase its capacity by 360,000 barrels per day for exports to Asia and the U.S. West Coast.