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3mo ago

South Bow Launches Prairie Connector Open Season to Link Alberta Crude to U.S. Hubs

The company is testing demand through binding bids this month to decide on a 450,000‑barrel‑a‑day route that could leverage Keystone XL’s Canadian corridor.

Pipes meant for the defunct Keystone XL project are shown stacked at a yard in Gascoyne, N.D., on Wednesday April 22, 2015. THE CANADIAN PRESS/Alex Panetta
Pipeline facilities now owned by South Bow Corp. are seen in Hardisty, Alta., on Friday, Nov. 6, 2015. THE CANADIAN PRESS/Jeff McIntosh

Overview

  • South Bow opened a binding bid process that runs through March 30 and will take 60 days afterward to decide if commitments justify advancing the project.
  • Prairie Connector is proposed to move 450,000 barrels per day from Hardisty, Alberta, to U.S. delivery points including Cushing, Oklahoma, and the Gulf Coast.
  • The company has approached landowners in southwest Saskatchewan to re‑survey parcels along the original Keystone XL route and has begun making initial survey payments.
  • CEO Bevin Wirzba says sharing risk with partners and customers is a priority and contends the offering can compete with Enbridge’s cross‑border plans and potential Venezuelan crude into the Gulf Coast market.
  • South Bow’s Keystone XL permits on the Canadian side remain valid, any cross‑border build would require a U.S. presidential permit, the company has not filed with the Canada Energy Regulator on Prairie Connector, and it reported Q4 net income of $156 million on $503 million in revenue.