Canadian Prime Minister Mark Carney and President Trump have discussed potentially restarting the Keystone XL pipeline project, according to a Canadian official.
The project, which would transport oil from Canada to the U.S., was stopped four years ago after the Canadian government was unable to convince then-President Biden to reverse his decision to cancel its permit.
During his first term, President Trump had previously revived the project, which had been stalled under the Obama administration. The pipeline could move a large amount of crude oil daily, connecting to other pipelines that supply refineries on the Gulf Coast.
The Canadian official said that Trump seemed open to the idea during their meeting. Carney reportedly connected energy cooperation to tariffs on Canadian steel and aluminum.
Carney also spoke about “unleashing Canadian energy” in a video call with business leaders.
Biden canceled the Keystone XL permit in 2021, citing concerns about the impact of oil sands crude on climate change.
An oil pipeline operator said they are not involved in the discussions but support efforts to increase the transport of Canadian crude oil.
Carney is facing pressure to get the pipeline built. A former Alberta Premier has said that building a new pipeline would be the most efficient way to increase oil shipments to the U.S. Gulf Coast. He suggested that Canada could use its cooperation on energy to negotiate lower tariffs.
Carney also mentioned that tariffs on Canadian aluminum are not beneficial, as Canada supplies a large percentage of U.S. aluminum needs.
Carney said that Canada’s relationship with the U.S. has changed, stating, “Our relationship will never again be what it was,” and “We understand America first.”
