Reviving Keystone XL Could Strengthen U.S.-Canada Energy Ties, Carney Says

Canadian Prime Minister Mark Carney said reviving the canceled Keystone XL oil pipeline could help strengthen U.S.-Canada energy cooperation, signaling potential renewed interest in cross-border infrastructure discussions with Washington.

(Reuters) — Reviving the proposed Keystone XL oil pipeline from Alberta to the U.S. could play a part in tightening U.S.-Canada energy cooperation, Prime Minister Mark Carney said on Oct. 10.

Carney raised the idea during an Oct. 7 meeting in the Oval Office with U.S. President Donald Trump on defusing trade tensions, according to a source familiar with the discussions.

"We are looking for areas where the integration of our economies will be better for us both. We have opportunities in the energy sector - there are many possible projects, including Keystone XL, but there are others," he told a press conference.

The proposed pipeline was rejected by U.S. President Barack Obama's administration and revived by Trump during his first term. U.S. President Joe Biden revoked a key permit in 2021 and there is currently no proponent for the pipeline.

Reviving Keystone XL could help improve Carney's relations with the oil-producing province of Alberta, which says Ottawa is strangling the energy industry with such measures as a west coast tanker ban and a proposed cap on emissions.

Asked whether Ottawa could scrap those measures, Carney replied: "It depends".