Trump calls for Keystone XL pipeline revival, but developer has moved on

(UI) — President Donald Trump’s recent executive order has reignited discussions about the Keystone XL pipeline, a long-debated oil infrastructure project that faced significant political and environmental scrutiny, as reported by BNN Bloomberg.

Despite the renewed spotlight, the chances of reviving the pipeline remain slim, especially since its former developer has moved on from the venture.

The order, which reverses several directives from the Biden administration, includes a repeal of the January 2021 decision to revoke Keystone XL’s permit. However, the project’s future remains uncertain, as critical components of its development have been dismantled, and its original builder, South Bow Corp. (a spinoff of TC Energy), has shown no interest in revisiting the $8 billion, 1,200-mile project.

“We’ve moved on from Keystone XL,” South Bow’s CEO, Bevin Wirzba, told BNN Bloomberg last June.

In November 2024, Trump announced his intent to revive the Keystone XL pipeline, framing it as a key element of his pro-fossil-fuel agenda. Originally proposed by TC Energy in 2010, the pipeline faced a tumultuous history, including rejection by President Obama, approval under Trump, and cancellation by President Biden. While Trump touted the project as a way to overturn Biden’s policies, its strategic necessity has diminished due to expanded oil production in North America and Canada’s alternative export routes.

However, industry experts say a revival is highly unlikely.

“Do I think the Keystone Pipeline project will be seriously considered again? No,” said Pipeline & Gas Journal Editor-in-Chief Michael Reed. “First off, elected officials, presidents or not, do not re-introduce pipeline projects. They can be supportive, and that is always a good thing.”

Reed also pointed out that TC Energy, the pipeline’s original developer, no longer owns the pipeline system the project was intended to complement. Additionally, portions of the pipeline that were installed have been removed, and easements have been returned to landowners. Any attempt to restart the project would require new local permits and face significant legal challenges.

“The biggest negative factor could be that the economic case for Canadian crude shipment to the Gulf Coast is considerably less attractive now, due to increased U.S. oil production and Canada’s expanded export infrastructure,” Reed added.

The project, intended to transport crude oil from Alberta, Canada, to Nebraska, faced numerous challenges over the years. Key permits have expired, and significant regulatory hurdles would need to be overcome before any progress could resume.

According to BNN Bloomberg, Anthony Swift of the Natural Resources Defense Council said restarting the pipeline would essentially mean rebuilding from scratch.

The White House has not issued a comment on the matter, and it remains unclear whether Trump’s order will translate into tangible action.

Trump’s move to revisit Keystone XL has drawn mixed reactions. While he and other Republican leaders have criticized the Biden administration’s cancellation of the project—blaming it for rising gas prices—Trump has also downplayed the need for Canadian oil, citing the U.S.’s abundant resources.

The Keystone XL debate reflects broader political dynamics, with Trump using the pipeline as a platform to challenge Biden’s policies and underscore his own priorities. In his executive order, Trump described the Biden administration’s actions as harmful to the economy.

In November 2024, Cadiz Inc. announced plans to repurpose 180 miles of steel pipe from the terminated Keystone XL Pipeline for a water infrastructure project in California. The decision followed months of assessment to confirm the 36-inch steel pipe’s suitability for water transport.

The steel will now be used to expand Cadiz’s groundwater bank in the Mojave Desert, connecting it to major water networks across the Southwest. Construction is set to begin in 2025, and once completed, the pipeline system will be the largest groundwater bank in the region. The project has already secured a letter of intent for up to $150 million in investment, with additional contributions from Native American Tribes and public sector entities potentially bringing total funding to $800 million.

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