Carney pitches Keystone XL restart in exchange for progress on aluminum, steel

OTTAWA — Prime Minister Mark Carney raised the prospect of reviving the Keystone XL pipeline project with U.S. President Donald Trump as part of a larger pitch on linking energy co-operation and support for Canada’s steel and aluminum sectors.

A government source who was briefed on the discussions told The Canadian Press that Trump was “very receptive” to the idea during his Tuesday meeting with Carney in the White House, and the two leaders directed their teams to pursue discussions in the days ahead.

CBC News was first to report on Carney raising Keystone XL.

The source said Carney and Trump discussed co-operation across different sectors, and how agreements in one sector could affect progress in another.

Trump posted on social media in February that he wanted to revive the Keystone XL project, which would run Alberta crude oil down to refineries on the U.S. Gulf Coast.

The project was shut down by the Obama administration before Trump revived it in his first presidency, only for it to be quashed again under President Joe Biden.

South Bow Corp., the oil pipeline operator spun off from TC Energy Corp. last year and now the owner of the existing Keystone system, said in February — following Trump’s social media post — the company had “moved on” from the XL expansion project.

A spokesperson for South Bow told The Canadian Press on Wednesday the company was not privy to ongoing discussions between Canada and the U.S. but it “is supportive of efforts to find solutions that increase the transportation of Canadian crude oil.”

“We will continue to explore opportunities that leverage our existing corridor with our customers and others in the industry,” Solomiya Lyaskovska wrote in a media statement.

News of Carney’s pitch was welcomed by Alberta Premier Danielle Smith, who has been on a tour of Quebec and Ontario this week pitching a new pipeline project to the West Coast.

“They’re talking about a steel, aluminum and energy construct for a deal to start easing some of the pain on the tariffs. So I think that that’s a positive,” Smith said at a conference in Toronto on Wednesday.

“What I told Prime Minister Carney when he came in is, stop threatening to sell the U.S. less energy, and let’s promise to sell them more. Because I think that’s the pathway to a solution.”

This report by The Canadian Press was first published Oct. 8, 2025.

— With files from Lauren Krugel in Calgary