Executives at South Bow Corp. say clients have been clamouring to ship extra oil on the southern leg of its pipeline community.
Richard Prior, South Bow’s chief working officer, says latest geopolitical turmoil has pushed a rise in demand for extra oil exports, together with through the U.S. Gulf Coast.
South Bow operates the Keystone system that runs from japanese Alberta to refineries within the Midwest and the Texas coast.
Calgary-based South Bow Corp. operates roughly 4,900 kiolometres of pipelines from Alberta to the U.S. Gulf Coast.
Supply: SouthBow.com
Common throughput on Keystone in the course of the first three months of 2026 was 616,000 barrels per day, with the U.S. Gulf Coast phase averaging about 709,000 barrels a day.
Prior says the Gulf Coast leg of Keystone can transfer greater than 800,000 barrels per day, however there may be restricted capability to develop capability a lot additional past that stage.
South Bow is within the midst of weighing bids for a possible new challenge known as Prairie Connector, which might ship oilsands crude to the Canada-U.S. border and onto U.S. locations.
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Prairie Connector may use dormant pipe that had been meant for the defunct Keystone XL growth challenge, which was scuttled amid intense environmental and political opposition a number of years in the past.
Keystone XL was pursued by TC Vitality Corp., which spun off its oil pipeline enterprise to kind South Bow in 2024.
U.S. President Donald Trump lately granted a allow to a separate proposal by Bridger Pipeline LLC linking Wyoming to the Canada-
U.S. border. That pipeline may hyperlink up with Prairie Connector.
This represents a significant growth within the allowing course of for cross-border vitality infrastructure and one which has understandably attracted its fair proportion of consideration,” mentioned South Bow CEO Bevin Wirzba.
“That mentioned, we’re persevering with to work diligently to guarantee any challenge we advance is inside our threat preferences and that dangers are allotted appropriately among the many events greatest positioned to handle and mitigate them.”
So far as what kind a possible partnership would possibly take, Wirzba mentioned, “We’re nonetheless baking the cake on just a few components of that.”
To be comfy making a ultimate funding resolution on Prairie Connector, it will have to nail down the “typical components” like its contracting technique, provide chain, procurement and value estimates, Wirzba mentioned.
Nevertheless it doesn’t finish there.
“We want to make sure that we handle and mitigate any last-mile threat that might happen on the challenge sooner or later,” Wirzba mentioned.
“We’re seeing nice alignment among the many regulatory atmosphere in each Canada and the US, however we can’t expose our shareholders to dangers that they can not bear, nor can we.”
Late Thursday, South Bow posted first-quarter internet revenue of US$77 million, down from US$88 million throughout the identical interval of 2025.
The revenue amounted to 37 cents US per share versus a year-earlier 42 cents US.
South Bow, which retains its books in U.S. {dollars}, reported its income fell to US$491 million from US$498 million.
© 2026 The Canadian Press
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