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Source: Canada brought up Keystone XL revival during tariff discussions with Trump

CBC News reported on Wednesday that Canadian Prime Minister Mark Carney discussed the possibility of reviving Keystone XL, the oil pipeline connecting Alberta with the United States. A source familiar with these discussions confirmed this.

Source: Carney, under pressure from Canadians to deal with the painful U.S. steel, auto, and other tariffs, asked Trump whether he was interested in a Keystone project that had Canadian support.

The source stressed that discussions are in a very preliminary stage and refused to reveal whether or not the Canadian government is confident there will be a company willing build the pipeline. The source stated that Trump was open to the idea and that negotiators would consider it in future discussions.

CBC News was the first to report that Carney spoke with Trump about Keystone. Carney's and the White House did not respond immediately to requests for comments.

Keystone XL is a crude pipeline that was proposed. It would have been 1,181-kilometres long and carried approximately 830,000 barrels of oil per day from the oil sands in northern Alberta, to the U.S. major storage hub of Cushing, Oklahoma. The oil would then be sent to Gulf Coast refineries.

TC Energy proposed the project for the first time in 2008. It quickly attracted environmental and Indigenous resistance.

Trump revived the project during his first term after it was rejected by President Barack Obama. The pipeline, though construction had begun, was never finished after U.S. president Joe Biden revoked the key permit in 2021 for the U.S. segment of the project.

Trump stated in February that the Keystone Expansion was something he wanted to see built. He promised easy approvals if the company building the pipeline would "come home to America."

TC Energy spun off its oil-pipeline business in October last year into a brand new company called South Bow. The company lost billions of dollars on the Keystone Project when Biden canceled his permit.

South Bow's spokesperson stated that the company was not privy to ongoing discussions between Canadian and U.S. government but supported efforts to increase transportation of Canadian crude.

The company announced in February that it had "moved forward" with the Keystone project. (Reporting from Amanda Stephenson, Calgary; Additional reporting and editing by Jarrett Renshaw, Maria Cheng and Caroline Stauffer)

(source: Reuters)