South Bow Corp. announced it remains on course to make a final investment decision on its Prairie Connector pipeline project by mid-2027, following the successful completion of a shipper commitment process. The planned pipeline aims to transport crude oil from Canada’s oil sands to the Canada-U.S. border and onward to destinations in the United States, fulfilling a similar role to the previously cancelled Keystone XL expansion.
During the company’s second-quarter earnings call, CEO Bevin Wirzba emphasized that securing commercial commitments marked a key advancement toward project development. “Over the coming months, we will focus on stakeholder engagement, execution planning, cost refinement, financing and securing the permit durability needed to support that decision,” he said, underscoring the importance of stable regulatory approval in moving forward.
The Prairie Connector project may incorporate dormant pipeline segments initially intended for the defunct Keystone XL project, which was terminated amid strong environmental and political opposition years ago. Keystone XL had been pursued by TC Energy Corp., which spun off its oil pipeline assets into South Bow in 2024.
South Bow’s recent open season—in which companies bid for pipeline capacity—resulted in 20-year commitments from nine customers, covering a combined volume of 465,000 barrels per day. Wirzba described the outcome as a significant milestone, citing the ongoing demand for additional export capacity to support increasing crude production in Western Canada and the economic benefits it would generate.
The company’s second-quarter financial results demonstrated strength amid volatile oil market conditions driven by geopolitical tensions in the Middle East. South Bow reported net income of US$134 million for the quarter ending June 30, up from US$96 million in the same period last year. Earnings per share rose to 64 US cents from 46 cents, while revenue increased to US$546 million from US$524 million.
Chief Operating Officer Richard Prior highlighted particularly strong performance on the Keystone pipeline’s U.S. Gulf Coast segment, attributing increased throughput to disruptions in the global crude oil trade that have bolstered demand for pipeline connectivity to refining and export hubs. The company recorded an average of 596,000 barrels per day transported on its Keystone pipeline during the quarter and 800,000 barrels per day on the Gulf Coast segment.
South Bow also noted that a separate pipeline proposal by Bridger Pipeline LLC, which received a permit from former U.S. President Donald Trump to connect Wyoming with the Canada-U.S. border, could potentially link with the Prairie Connector, further enhancing export capacity for Canadian crude.