Title: Carney Discusses Keystone XL Pipeline Revival with Trump

OTTAWA — Prime Minister Mark Carney has proposed reviving the Keystone XL pipeline project during discussions with U.S. President Donald Trump. This proposal is part of a broader strategy to enhance energy cooperation and support for Canada’s steel and aluminum industries. A government source familiar with the talks indicated that Trump was "very receptive" to the idea, and both leaders have instructed their teams to continue discussions in the coming days.

The conversation took place during Carney's visit to the White House, where he and Trump explored potential collaboration in the energy sector. According to two government sources who spoke on condition of anonymity, the discussion about Keystone XL was linked to ongoing trade issues concerning steel and aluminum, which have faced tariffs from the Trump administration this year.

The revival of the Keystone XL project has been a point of contention since it was initially halted in 2021 by President Joe Biden. Trump has expressed interest in bringing the project back, and the premiers of Alberta and Saskatchewan have also shown support. However, the company that owns the existing Keystone pipeline system, Calgary-based South Bow, stated earlier this year that it had "moved on" from the project. A spokesperson for South Bow confirmed that the company is not involved in the current discussions between Canada and the U.S. and remains focused on its existing pipeline operations.

Despite the uncertainty surrounding the project, Alberta Premier Danielle Smith welcomed the discussions between Carney and Trump. She noted that the province has invested over $1.5 billion in the Keystone XL project and emphasized the importance of using Canadian materials in infrastructure projects. "We shouldn’t be threatening to sell the Americans less. We should be promising to sell them more," Smith said, highlighting her province's lobbying efforts in Washington regarding Keystone.

The Keystone XL pipeline, proposed in 2008, was supported by the previous Liberal government under Prime Minister Justin Trudeau. However, the project faced significant setbacks when Biden revoked its approval. Trudeau expressed disappointment over the decision at the time. Liberal MP Corey Hogan, who serves as the parliamentary secretary to the natural resources minister, stated that it is "worth exploring" the possibility of reviving the project.

In recent discussions, Carney's government has also faced scrutiny regarding Smith's push for a new oil pipeline from Edmonton to British Columbia. Carney has expressed a commitment to making Canada an "energy superpower" and has indicated openness to new pipeline projects as part of a broader strategy that includes carbon capture initiatives to reduce greenhouse gas emissions.

Hogan mentioned that if Keystone XL were to be revived, it could be integrated into discussions about the government's "grand bargain" on fossil fuels. This approach aims to balance the growth of the oil and gas sector with efforts to decarbonize the economy. "The grand bargain is really about, how do we continue to grow the oil and gas sector, while continuing to de-carbonize the economy," Hogan said.

As discussions continue, the future of the Keystone XL pipeline remains uncertain, with various factors still needing to be addressed, including the project's route and the involvement of South Bow.