Overview
- South Bow disclosed Friday that it had secured 20-year binding contracts from oil producers to fill the proposed Prairie Connector, the company’s open-season goal to show commercial support for the project.
- Prairie Connector would use some pipe assembled for the cancelled Keystone XL and carry roughly 450,000–550,000 barrels per day from Hardisty, Alberta to the U.S. border where it would link with Bridger’s U.S. line.
- The company will decide by mid-2027 whether to proceed with final investment, and analysts estimate the project could cost around US$3 billion and take two to three years to build after a positive decision.
- South Bow says it needs confidence the U.S. cross-border permit will be durable before committing, noting recent U.S. steps that strengthen permits, including the presidential permit for Bridger and congressional rules that limit revocations.
- If built, the line would ease Alberta’s immediate oil takeaway strains and deliver more crude to U.S. markets, but it faces remaining regulatory reviews and likely legal challenges from Indigenous and environmental groups that could delay or block construction.