Canada's PM discusses reviving contentious Keystone XL pipeline with Trump

Canadian Prime Minister Mark Carney raised the prospect of reviving the contentious Keystone XL pipeline project with US President Donald Trump during his White House visit this week, a government official familiar with the matter said Wednesday.

A Canadian company pulled the plug on it four years ago after the Canadian government failed to persuade then-President Joe Biden to reverse his cancellation of its permit on the day he took office. It was to transport crude from the oil sand fields of western Canada to Steele City, Nebraska.

Trump previously revived the long-delayed project during his first term after it had stalled under the Obama administration. It would have moved up to 830,000 barrels (35 million gallons) of crude daily, connecting in Nebraska to other pipelines that feed oil refineries on the US Gulf Coast.

The Canadian government official said Trump was receptive to the idea when it was talked about during their White House meeting Wednesday. The official said Carney linked energy cooperation to Canada's steel and aluminum sectors, which is subject to 50 per cent US tariffs. The official spoke on condition of anonymity as they were not authorised to speak publicly on the matter.

Carney mentioned building major projects and unleashing Canadian energy" in a live video call with business leaders in Toronto on Wednesday.

Biden cancelled Keystone XL's border crossing permit in 2021 over longstanding concerns that burning oil sands crude could make climate change worse and harder to reverse.

Carney is under pressure from the oil-rich province of Alberta to get a pipeline built.

South Bow Corp, the oil pipeline operator that is the owner of the existing Keystone pipeline system, didn't immediately respond to a request for comment on Wednesday.

Carney mentioned Wednesday in the call that tariffs on Canada's aluminum exports are not wise, noting the country provides 60 per cent of the aluminum the US needs.

For the US to produce that much aluminum, it would need the equivalent of the energy of 10 Hoover Dams, Carney said. Is making aluminum really the first best use of that power at a time when you've got the AI revolution, and you're reassuring manufacturing that you want to keep people's electricity costs down at home.

Carney also reiterated that Canada's relationship with the US, which led to increasing integration over many years, has changed.

Our relationship will never again be what it was," Carney said. We understand America first.