South Bow confirms open season for new pipeline to the U.S. using legacy Keystone XL permits

Miles of unused pipe, prepared for the proposed Keystone XL pipeline, outside Gascoyne, North Dakota. Photo by Andrew Burton/Getty Images filesArticle contentSouth Bow Corp. says it is in the “early stages” of gauging customer interest in capacity on a cross-border pipeline linking Alberta’s Hardisty oil terminal to U.S. oil markets in Oklahoma and along the Gulf Coast — a project it is dubbing the “Prairie Connector.”Sign In or Create an AccountEmail AddressContinueor View more offersArticle contentThe company said Friday it has commenced an open season — industry parlance for inviting potential customers to reserve capacity on a proposed project — using existing infrastructure and Canadian federal permits that are believed to have been originally issued for the cancelled Keystone XL project.Article contentWe apologize, but this video has failed to load.Try refreshing your browser, ortap here to see other videos from our team.We apologize, but this video has failed to load.Try refreshing your browser, ortap here to see other videos from our team.Play VideoArticle contentArticle content“A recent endeavour of ours, the Prairie Connector project, has garnered some attention,” South Bow president and chief executive Bevin Wirzba said Friday on an earnings call. “While currently in early stages … an open season to determine commercial interest is currently underway.Article contentWirzba’s remarks indirectly confirmed details the Financial Post reported last month that regulatory filings submitted in Montana show a private U.S. company, Bridger Pipeline LLC, plans to build a 550,000-barrel-per-day pipeline that begins at the Canada-U.S. border near Phillips County, Montana.Article contentAsked Friday about Bridger’s filing that suggested that the cross-border pipeline would still require a presidential permit, South Bow’s CEO declined to comment.Article content“We’re in a position where our permits are in place in Canada for the Prairie Connector and we’re working close with the Canadian Energy Regulator to manage through that,” he said.Article content“We’re only going to talk to our component of a project which is delivering service from Hardisty to the border,” Wirzba said. “There’s a lot of things going into the commercial dialog right now… and I’ll leave our partners to speak to their own business.”Article contentArticle contentThe open season is seeking binding commitments for 450,000 barrels per day of long-term firm transportation service from Alberta to multiple U.S. delivery points ahead of a March 30 deadline, according to recent note published by RBC Capital Markets.Article contentRead More Atlantic Canada's energy isolation is getting worse as East-West pipeline divide persists 'No one is going to build a pipeline without certainty,' Keyera CEO says Article contentAfter that, South Bow said there will be a 60-day period “to determine whether sufficient commercial support exists to advance the proposed project.”Article contentKeystone XL was first proposed in 2008 as an expansion of the existing Keystone pipeline system to carry up to 830,000 barrels per day of crude from Alberta to Nebraska, where it would connect with pipelines supplying refineries in the U.S. Midwest and along the Gulf Coast. The project became a political flashpoint in Washington as successive administrations alternately approved and revoked the cross-border permit required for the line.Article contentTC Energy Corp., which owned the Keystone network before spinning it off into South Bow, abandoned the project in 2021. However, some pipe had already been installed for the project on the Canadian side of the border, where it remains unused.Trending Bank of Canada governor warns of growing risks to financial stability Economy South Bow confirms open season for new pipeline to the U.S. using legacy Keystone XL permits Oil & Gas Beer, wine sales fall even more, putting tax revenues on the rocks, but one boozy drink is on the rise Retail & Marketing U.S. aluminum buyers hunt for alternatives as Iran war upends global supply Commodities ‘As dead as fried chicken’: Why Trump finally fired Noem Economy Article contentWirzba was asked Friday what had changed since the collapse of the former KXL project to give him confidence a new proposal could succeed.Article content“Many of our team were around during that initial or the last attempt, and so there are a tremendous amount of learnings,” he said.Article content“The policy environment in North America has been far more constructive. The unfortunate events that are ongoing in Iran, and what we’ve had in the tragic events in Ukraine, really have demonstrated that energy security and establishing energy corridors is critical.”Article content• Email: mpotkins@postmedia.com Article contentShare this article in your social network Get the latest from Meghan Potkins straight to your inbox Sign Up CommentsYou must be logged in to join the discussion or read more comments.Create an AccountSign in Join the Conversation Postmedia is committed to maintaining a lively but civil forum for discussion. Please keep comments relevant and respectful. Comments may take up to an hour to appear on the site. You will receive an email if there is a reply to your comment, an update to a thread you follow or if a user you follow comments. Visit our Community Guidelines for more information. Bank of Canada governor warns of growing risks to financial stability Economy South Bow confirms open season for new pipeline to the U.S. using legacy Keystone XL permits Oil & Gas Beer, wine sales fall even more, putting tax revenues on the rocks, but one boozy drink is on the rise Retail & Marketing U.S. aluminum buyers hunt for alternatives as Iran war upends global supply Commodities ‘As dead as fried chicken’: Why Trump finally fired Noem Economy