South Bow Says Its U.S.-Canada Pipeline Awaits Donald Trump

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Written by Daniel Graeber for IIR News Intelligence (Sugar Land, Texas)

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Summary

Two pipelines in North America could connect to ostensibly revive the Keystone XL oil pipeline. That runs counter to Canadian efforts to diversify trade.

'Sovereign Risk' Hangs over South Bow

The developer behind the revival of the Keystone XL oil pipeline from Canada said it's standing pat until it's assured of U.S. federal approval.

Data from Industrial Info Resources show South Bow is affiliated with 53 separate pipeline assets related to the Keystone XL or the Keystone oil pipelines.

Speaking at an energy conference in Calgary, Bevin Wirzba, the head of South Bow, said he was concerned about what he referred to as sovereign risk, where a government can unilaterally disrupt development of pipelines and other energy infrastructure.

"We lost, historically, a presidential permit across the border," he was quoted by the Reuters news service as saying. "So we still need to solve that sovereign risk, and we're working on that within the United States and Canada."

Industrial Info Resources has more details about South Bow's plans in a project report. As Keystone XL, the U.S. leg of the pipeline was suspended by several Democratic administrations. If sanctioned, the line could carry as much as 450,000 barrels per day (bpd) once it's completed by 2028.

The Prairie Connector is the Canadian section of a broader network. It would connect to the planned Bridger pipeline in the United States. The Bridger project entails the construction of a 435-mile crude oil pipeline that would transport about 550,000 bpd of Canadian and Bakken crude from the U.S.-Canada border to Guernsey, Wyoming. Readers can learn more from a detailed project report.

The project includes a potential extension to Steele City, Nebraska, for further connection to Gulf Coast markets.

President Donald Trump signed an executive order granting a cross-border permit for the Bridger Pipeline earlier this year. Nick McKenna, the head of the Canadian division of ConocoPhillips, said last week that efforts led by Trump, a pro-fuels president who's targeted wind energy while supporting oil and gas developments, are hard to replicate.

Canada's prime minister had raised the issue during a meeting with Trump earlier this year. Working to cut U.S. trade, Canada can already deliver crude oil outside of North America through the Trans Mountain pipeline and proposals are in the works for another export pipeline from Alberta.

The United States is Canada's top trading partner and the top foreign supplier of crude oil. Over the seven-day period ending May 20, Canada sent an average of 3.8 million bpd across the border, accounting for 61% of total U.S. imports.

Prairie Connector alone would increase Canadian crude oil exports to U.S. refiners by as much as 12%. Elsewhere, a snapshot of bilateral trade from the Canada Energy Regulator shows Carney has an uphill battle to cut U.S. trade.

Total exports of crude oil, refined petroleum products, natural gas and natural gas exports were valued at US$114 billion last year, accounting for 20.2% of Canada's total goods exported globally.

By the Numbers

• 61% of oil imported to U.S. comes from Canada
• 12% increase in volumes of pipelines are built

Key Takeaways

• South Bow waiting for Donald Trump.
• Leftovers from Keystone XL could be used.

About Industrial Info Resources
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, Industrial Info Resources is tracking over 250,000 current and future projects worth $30.2 Trillion (USD).