A proposed pipeline that would carry Canadian crude oil south to the U.S. is close to securing the minimum commitments from oil companies that the project requires to move forward.
The Alberta-to-Wyoming pipeline would increase Canada’s crude exports to the U.S. by more than 12% if it proceeds.
U.S. President Donald Trump has signed an order granting a cross-border permit for ​the project.
In 2021, then U.S. President Joe Biden revoked ‌the permit needed to build the Keystone XL oil pipeline, which was the last major pipeline proposed between Canada and America.
The new pipeline would revive 150 km of infrastructure on the Canadian side that has already been built and is sitting idle.
That pipeline would connect ‌to a proposed pipeline in Montana and extend all the way to Wyoming.
Oil companies have committed ⁠to move at least 400,000 barrels per day (bpd), or about 72% of the pipeline’s ​initial capacity of 550,000 bpd.
The project would eventually be capable of moving up to 1.13 million barrels per day of crude oil, according to a regulatory filing.
Oil output from Canada, the world’s fourth-largest producer, was about 5.5 million bpd at the end of January this year. That could climb as high as 6.1 million bpd by 2030, say analysts.
Companies that have committed to move oil through the new pipeline include Cenovus Energy (TSX: $CVE) and Canadian Natural Resources (TSX: $CNQ).
