U.S. President Donald Trump has approved the development of a pipeline named “Keystone Light.” It aims to transport Canadian crude oil to the United States with a potential capacity of over 1 million barrels per day (bpd). Valued at approximately $2 billion, this project marks a significant step in Canada’s efforts to diversify its oil exports.
The pipeline, proposed by Bridger Pipeline LLC, will have a 36-inch diameter and stretch nearly 1,050 kilometers (650 miles) from the U.S.-Canada border in Phillips County, Montana, to Guernsey, Wyoming. Construction is slated to begin in 2027, with completion expected by late 2028 or early 2029. Initially, the pipeline will operate at approximately 550,000 bpd.
How Does “Keystone Light” Expand Export Opportunities?
The name “Keystone Light” stems from its resemblance to the Keystone XL project, which was canceled by former U.S. President Joe Biden in 2021. The 647-mile expansion of the Bridger pipeline aims to transport up to 550,000 barrels per day of Canadian crude oil. The company also plans potential connections to the Bakken shale oil field, providing access to a significant portion of Bridger’s existing gathering network in North Dakota.
According to Matthew Lewis, founder of Plainview Energy Analytics, this flexibility “positions the project for potential future expansion beyond 550,000 barrels per day” and “creates an opportunity for a new competitive market outlet for Bakken shippers.” Analysts at Plainview Energy Analytics noted that transporting light crude oil in batches could allow volumes to exceed typical heavy oil ceilings of 800,000 barrels per day for a line of this size, potentially reaching up to 1.13 million barrels per day.
What Risks Does the Project Pose?
The project anticipates significant opposition from environmental groups, Indigenous communities, and landowners. The Montana Environmental Information Center (MEIC) has expressed concerns about the risk of spills and the potential impact on Montana’s land and water. MEIC points to the history of the owner, Bridger Pipeline LLC, a subsidiary of True Companies, specifically a 2015 incident where over 30,000 gallons of oil spilled into the Yellowstone River near Glendive, Montana, contaminating the city’s water supply.
MEIC argues that the pipeline will transport environmentally destructive fuel sources, and the project may require a new presidential permit for border crossing.
Source: Yahoo Finance
