Canadian pipeline operator South Bow said on Thursday it has launched a formal open season seeking binding long-term shipping commitments for a revival of part of the Keystone XL oil pipeline, a move that could boost Canada’s crude exports to the United States by more than 12%.
The open season, which runs until March 30, would solicit transportation commitments from Hardisty, Alberta, to U.S. delivery points. South Bow will then conduct a 60-day review of the results before deciding on next steps.
The project would require an approval from the Trump administration. Additional pipeline links to U.S. refining hubs would need to be constructed if approval is granted.
South Bow took over the Keystone XL pipeline following its spin-off from TC Energy.
The pipeline was canceled in 2021 by then-President Joe Biden. The Canadian portion of the line is already built and holds all necessary Canadian regulatory permits.
Shares of South Bow fell nearly 1% in after-hours trading.
Separately, the company reported a decline in fourth-quarter adjusted core profit, weighed by lower throughput volumes on its operating Keystone Pipeline and the U.S. Gulf Coast segment of the Keystone Pipeline System.
The company’s throughput from the Keystone Pipeline came in at 594,000 barrels per day (bpd) for the quarter ended December 31, compared with 621,000 bpd a year earlier.
Throughput on the U.S. Gulf Coast segment was 680,000 bpd, compared with 784,000 bpd a year earlier.
(Reporting by Pranav Mathur in Bengaluru; Editing by Tasim Zahid)