South Bow Corp is reportedly exploring plans to revive the long-stalled Keystone XL pipeline project, which was previously cancelled due to political and environmental hurdles. This move follows TC Energy's decision to spin off its oil pipeline business into the newly formed South Bow in 2024 to focus on natural gas. The project aims to transport crude oil from Alberta, Canada, directly to refineries on the US Gulf Coast that are facing supply shortages. These refineries are currently seeking alternative sources as imports from Mexico and Venezuela continue to decline. While the project faces significant regulatory challenges, its completion would enhance midstream capacity and improve price realization for Western Canadian Select (WCS) crude. Analysts note that the revival could provide critical market access for Canadian oil sands despite the inherent political risks.
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