U.S. President Donald Trump has announced the revival of the controversial Keystone XL pipeline project during ongoing trade discussions between Canada and the United States to prevent potential new U.S. tariffs on Canadian products. Trump took to his Truth Social platform to declare, “The great Keystone XL Pipeline, long ago killed by Sleepy Joe Biden, may be awoken from the grave!” Alongside his statement, Trump shared an AI-generated image depicting him lifting a large pipeline labeled “KEYSTONE” out of a grave, with “Buried by Biden” written on a headstone.

While Canada has not publicly responded to Trump’s assertion regarding the project’s revival in the context of trade negotiations, Washington confirmed a temporary halt on planned 50 per cent tariffs on various Canadian goods for three days to facilitate further talks.

The history of the Keystone XL expansion project dates back to its initial proposal in July 2008 when TransCanada, now known as TC Energy, and ConocoPhillips introduced the concept of extending the Keystone pipeline to transport oilsands bitumen from Alberta to Texas. Over the years, the project faced opposition and regulatory hurdles, leading to its eventual cancellation and termination in 2021.

In recent developments, Trump, now serving his second term as President, has endorsed a proposed project to transport Canadian oil across the border as part of efforts to partially revive the Keystone XL project. Despite South Bow, the company associated with Keystone XL, moving on from the project, discussions continue on potential options to enhance Canadian oil supplies to meet rising demands.

Prime Minister Mark Carney has indicated renewed Canadian interest in the Keystone XL pipeline during discussions with Trump, suggesting ongoing considerations for the project’s revival. Additionally, South Bow’s involvement in a new oil pipeline initiative, the Prairie Connector, indicates potential future developments in the energy sector.