Does Canada want to depend more on US? This seems the thought to prop up after the federal government of Canada signaled that it will “do whatever we can” to facilitate a potential US-led Keystone XL revival as Prime Minister Mark Carney seeks relief from 50% US steel and aluminum tariffs.
Energy Minister Tim Hodgson said Ottawa is not fixed on any single route into the US, but said Canada is open to facilitating Keystone XL if it becomes part of a broader solution in talks with Washington.
“We have said if it’s part of a bigger solution, we’re open to facilitating,” he said.
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The minister noted the Canadian portion remains fully permitted if the line follows the original path from Hardisty, Alberta to Nebraska.
“The pipe is in the ground for a significant portion of that route. The Americans have to decide what they want to do on their side of the border,” he added.
Hodgson declined to outline specific steps or any taxpayer exposure, citing ongoing negotiations, but added “there are always things that we can do to make it easier.”
The push comes after Carney raised the defunct pipeline in Washington as part of efforts to secure tariff relief, with trade talks stalling over President Donald Trump’s anger at anti-tariff ads run by Ontario. Carney remains in Asia and has said Canada is ready to resume negotiations, adding both sides were close to an agreement before Trump ended the talks.
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Ottawa is also exploring immediate ways to send more energy south. Hodgson cited electricity exports and uranium used by US reactors, with Canada as the largest foreign supplier according to Natural Resources Canada.
“The United States uses 20 million barrels of oil a day. They produce 12 (million),” he said.
Operator South Bow Corp., owner of the existing Keystone network, said earlier this month it would look to “leverage our existing corridor” and supports moving more Canadian crude. That marks a shift from February when the company said it had “moved on” after Trump called on social media for the line to be built.
Alberta Premier Danielle Smith said she was encouraged that Carney’s latest Washington trip appeared to include discussion of “an energy pipeline that would be a replacement for Keystone,” tying the idea to efforts to gain a reprieve on 50% steel and aluminum tariffs.
The long-running file underscores the constraints any revival must overcome. Keystone XL was first submitted in 2008, rejected in 2015 by the Obama administration, briefly advanced during Trump’s first term, and then had its permit revoked on the first day of the Biden administration in 2021. Hodgson emphasized Canada’s readiness on its side of the border if the US chooses to proceed along the original route.
Beyond oil, critical minerals remain central to the talks. The Trump administration recently took equity stakes in two Canadian companies, and critical minerals are slated as a main topic at this week’s G7 energy and environment ministers’ meeting in Toronto. Hodgson said he expects to make “a number of announcements” to underscore Canada’s leadership in strengthening allied supply chains.
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