en.Wedoany.com Reported - Canada's South Bow and U.S. Bridger Pipeline announced Tuesday plans to jointly build a new crude oil pipeline from Guernsey, Wyoming to Cushing, Oklahoma.
The project will utilize an existing corridor acquired from another company for development, with the primary priority being to engage landowners and communities along the proposed route, the two companies said in an email. This pipeline is the third segment of a larger project aimed at transporting oil from Alberta to the Cushing hub.
A JPMorgan research report last week stated that the South Bow-Bridger joint venture acquired the right-of-way for the Liberty pipeline from Tallgrass Energy. The Liberty pipeline, originally planned to transport oil from the Rocky Mountains and North Dakota's Bakken production area to Cushing, has been canceled. Tallgrass did not respond to a request for comment, while Bridger and South Bow declined to confirm details of the acquisition.
South Bow and Bridger have also separately proposed a pipeline called Prairie Connector, extending from Alberta to Guernsey, Wyoming, which could increase Canadian crude oil exports to the U.S. by more than 12%. U.S. President Donald Trump signed an executive order in April to clear the way for the project's cross-border permit, reviving parts of the previously stalled Keystone XL project. In 2021, former President Joe Biden formally revoked key permits required for the project.
Although the U.S. route of Prairie Connector differs from Keystone XL, its Canadian South Bow segment will use a section of approximately 150 kilometers (93 miles) of pipeline that has been built but is idle. This segment will connect to Bridger's proposed pipeline in Montana, extending about 645 miles (1,038 kilometers) to Guernsey.
Matthew Lewis, founder of industry consultancy Plainview Energy Analytics, said the third segment is an integral part of the entire project. Currently, there is a lack of significant oil export capacity from the Wyoming and Colorado regions to major hubs like Cushing, necessitating a major new project to transport oil from Wyoming to the oil hub.
According to documents filed with Canadian energy regulators, South Bow plans to restart work on its portion of Prairie Connector around the second quarter of 2027, with a target to begin operations around the fourth quarter of 2028. The company said last month it has secured the shipper commitments needed to advance the project.
