A potential Canada–U.S. trade agreement would include a pipeline paid for by Canada, President Donald Trump said Sunday, putting Keystone XL back into negotiations years after Joe Biden blocked it.

Speaking to reporters in Dubuque, Iowa, on November 1, Trump said the two countries had the “concept” of a deal.

“They’re going to build the Keystone Pipeline,” he said. “They’re going to pay for it.”

Prime Minister Mark Carney described the leaders’ conversation positively in a Sunday social media post. He said negotiators would work over the coming weeks toward an agreement intended to create jobs, improve affordability and respect Canadian sovereignty, The Canadian Press reported.

Reuters reported that the Canadian minister responsible for U.S. trade, Dominic LeBlanc, had no further comment beyond Carney’s remarks.

No final terms for a pipeline or its financing were announced.

The original Keystone XL project was terminated in June 2021. TC Energy confirmed that construction had been suspended after its U.S. presidential permit was revoked on January 20, Biden’s first day in office.

A different commercial proposal is already advancing.

South Bow, which took over TC Energy’s crude-pipeline business, is developing Prairie Connector from Hardisty, Alberta, to the Canada–U.S. border, connecting with Bridger’s downstream facilities.

Go Ad Free

South Bow says the Canadian project would involve approximately 380 kilometres of new pipeline and reuse roughly 150 kilometres of installed, preserved pipeline, alongside two pump stations. Its downstream connections are intended to reach American markets including Wyoming, Cushing, Oklahoma, and the Gulf Coast.

South Bow’s proposed Prairie Connector would reuse part of the cancelled Keystone XL infrastructure to connect Canadian crude supply with U.S. markets. A final investment decision is targeted for mid-2027. Source: South Bow and Reuters. Graphic: Rebel News.

---

Commercial support is in place.

In its August results, South Bow reported 20-year binding commitments from nine customers for 465,000 barrels a day of firm transportation service from Hardisty to U.S. delivery points.

A final investment decision is targeted for mid-2027.

South Bow says remaining work includes permits, assurances that permits will endure, financing and consultation with affected communities. That decision would determine whether the project proceeds.

Alberta Premier Danielle Smith previously told Rebel News that the collapse of trade negotiations had not killed pipeline prospects. She expressed support for additional oil exports while acknowledging she was not present for the Canada–U.S. discussions.

The renewed talks come ahead of the November 3 American midterms, with tariff disputes affecting border states including Michigan and Maine. Reuters reports that negotiations have included possible relief for Canadian steel and automobiles.