Carney and Trump discussed Keystone XL revival, sources say
Prime Minister Mark Carney and US President Donald Trump discussed the possibility of reviving an oil pipeline project connecting Alberta to the US at a meeting in Washington on Tuesday, a source familiar with the discussion told the BBC.
Carney brought up the Keystone XL pipeline in a broader conversation about U.S. tariffs on Canadian steel and aluminum, and Trump was receptive to the idea, the source said.
The pipeline was approved by Canada’s National Energy Board in 2010 but was blocked by both the Obama and Biden administrations.
Although Trump had stated as recently as February that he would like to see the building built, the company behind it had stated that the project was “ongoing.”
The BBC has reached out to the White House and the prime minister’s office for comment. Keystone XL discussions were first reported by CBC News.
The source told the BBC that the meeting was described as a preliminary meeting and that both Carney and Trump had instructed their teams to continue the talks in the coming days.
In a statement on Wednesday, the prime minister said his call with Trump focused on “key priorities on trade and defense.” and noted that the two leaders “identified opportunities for material progress in steel, aluminum and energy trade.”
Carney’s statement did not mention any specific energy projects, including oil pipelines.
The prime minister is under domestic pressure to sign a trade and security agreement with the United States in the face of higher tariffs on key Canadian sectors, including a 50 per cent duty on steel and aluminum and a 25 per cent duty on vehicles.
Keystone It was estimated to carry 830,000 barrels of oil per day.
It faced resistance from former President Barack Obama, who refused to grant the presidential permit required for its development in the United States after the Environmental Protection Agency (EPA) advised him not to approve it.
Environmentalists and indigenous groups have also long opposed the project.
Trump later revived it during his first term and construction began, but the project was halted after former President Joe Biden canceled permits on his first day in office.
The pipeline project was owned by Calgary-based TC Energy, which transferred its oil pipeline business to a new company called South Bow last year.
The company abandoned the project after the Biden administration canceled the permits. It is estimated that billions of dollars were lost on the project, including the Alberta government’s C$1.5 billion (US$1 billion; £800 million) investment.
After Trump touted the potential for revival in February, South Bow said it was “passing” on Keystone XL.
News that the pipeline had come up in discussions was welcomed by Alberta Premier Danielle Smith, who told reporters at the U.S.-Canada summit in Toronto on Wednesday that she was pleased the talks included steel, aluminum and energy.
“That’s been our position for a long time,” Smith said. he said. “One of the first things I told the Prime Minister was that we shouldn’t threaten Americans with selling less. We should promise to sell them more.”
He added that he sees Alberta oil as a key player in a “broader and more complete renegotiation” of the North American free trade agreement USMCA that “will benefit everyone.”
Separately, Smith said the government would launch a pipeline project through neighboring British Columbia in hopes of finding a private company to back it.
This idea was met with resistance by British Columbia Premier David Eby; He called it “fictional” and said it would threaten his state’s ecosystem.
Bloc Québécois Leader Yves-François Blanchet also criticized Alberta’s oil plans, saying he would condemn any new pipeline from the province as “destroying the environment of the entire planet.”
