US President Donald Trump has granted a cross-border permit for an oil pipeline project designed to transport Canadian crude from the US-Canada border to Guernsey, Wyoming.
The project, led by Canadian company South Bow and US-based partner Bridger Pipeline, plans to use pipe segments previously built for the cancelled Keystone XL pipeline.
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These segments remain fully permitted on the Canadian side after the 2021 revocation under former President Joe Biden.
Bridger Pipeline has proposed constructing a 645-mile route through eastern Montana and Wyoming, distinct from the original Keystone XL path. The crude oil pipeline is set to supply heavy Canadian crude oil through eight counties in eastern Montana and five counties in eastern Wyoming.
The onshore pipeline is expected to span 435 miles in Montana and roughly 215 miles in Wyoming. More than 70% of the new pipeline will be laid within already established pipeline corridors.
President Trump said: “Slightly different than the last administration. They wouldn’t sign a pipeline deal, and we have pipelines going up.”
South Bow was launched in 2024 following a spin-off from TC Energy, which formerly backed Keystone XL. Approximately 93 miles of pipe that was laid in Canada now sits idle and is available for the new project.
The Canadian company is looking to secure long-term shipping commitments for up to 450,000 barrels of oil per day, reported Reuters.
If completed, the cross-border pipeline could increase Canadian crude exports to the US by more than 12%.
The White House permit defines “Border facilities” as a 36in diameter pipeline from the international boundary in Phillips County, Montana, to the first pump station or shut-off valve within the US, and any related equipment or infrastructure.
Canadian officials have stated that they are aware of the approval, with Natural Resources Minister Tim Hodgson’s office affirming a continued focus on North American and international energy security and increased trade diversification.
However, the project remains subject to additional state-level permitting requirements and potential legal actions.
Bridger Pipeline executive partner Tad True said: “We are grateful to President Trump and the administration for their thorough review and approval of our permit application.
“This brings our proposed crude project one step closer to reality. We also want to thank Interior Secretary Doug Bergum, Energy Secretary Chris Wright and the National Energy Dominance Council for their hard work in getting this permit approved.”
