Trump Wants Canada’s Keystone XL Oil Pipeline Built ‘Now’

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(Bloomberg) -- US President Donald Trump said Monday he wanted to revive the Keystone XL oil pipeline, even though its developer has already walked away from the project.

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“The company building the Keystone XL Pipeline that was viciously jettisoned by the incompetent Biden Administration should come back to America, and get it built - NOW!” Trump said in a post on his social media network. Trump said his administration is “very different” from the last one and promised “Easy approvals, almost immediate start!”

“If not them, perhaps another Pipeline Company,” Trump added. “We want the Keystone XL Pipeline built!”

The multibillion-dollar 1,200-mile (1,931 kilometer) project, which was meant to carry Canadian oil sands crude to Nebraska, became a litmus test for environmentalism under former President Barack Obama, who rejected it in 2015. It’s been subject to political jockeying ever since.

Trump tried to revive Keystone XL during his first term, but former President Joe Biden revoked a permit allowing the pipeline to cross the US-Canada border hours after taking office in January 2021.

South Bow Corp., the oil pipeline business spun off from TC Energy Corp., which pursued Keystone XL for more than a decade, has indicated it’s not interested in a revival. Parts of the system — which runs through Alberta, Montana, South Dakota and Nebraska — have already been dismantled. Key permits have expired.

South Bow has “moved on from the Keystone XL project,” a spokeswoman said Monday night.

“We continue to engage with customers to develop options to increase Canadian oil supplies to meet growing US demand,” South Bow’s Katie Stavinoha said by email.

Trump has already revoked a Biden administration executive order that tossed out a March 2019 permit for the pipeline, at least theoretically putting it back in play. But Canadians are still facing down the threat of new tariffs on their exports to the US, including a 10% levy on crude. Trump has delayed the tariffs until early March.

The president has previously made it clear he believes the US can rely on its own oil and gas supplies, without the need for resources from its North American neighbors.

Trump’s comments mark just the latest bid by the president to breathe new life into stalled energy projects. Earlier this month, he vowed to complete the Constitution pipeline meant to transport natural gas to New York, even though its developer scrapped the venture in 2020.

White House Press Secretary Karoline Leavitt linked the two pipelines in an interview Monday with Fox News host Sean Hannity, as she emphasized Trump’s desire to push for more energy infrastructure.

“We want the Keystone XL pipeline built,” she said. “He wants a pipeline built in the northeast in New England, where I am from, where we have some of the highest electricity and utility rates in the country.”

--With assistance from Josh Wingrove.

(Updates with comment from pipeline developer and White House press secretary, from seventh paragraph.)

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