South Bow, a Canadian energy company, announced on Friday that it is starting the process to obtain the necessary permits for its Prairie Connector project in the United States.
The pipeline connecting Alberta to Wyoming will use sections of pipelines already installed in Canada as part of the Keystone XL project, which was canceled.
During a conference call, South Bow stated that it is working to secure its supply chain, procurement strategy, and cost estimation for the project.
The company is currently assessing if there is enough commercial support for the project, which could increase Canadian crude oil exports to the United States by over 12%. South Bow is expected to announce later this spring if it has received sufficient commitments from oil shippers.
South Bow anticipates that Canadian oil sands production will increase by approximately 1 million barrels per day over the next five to seven years, resulting in additional capacity demand for export pipelines.
However, South Bow’s CEO, Bevin Wirzba, emphasized that the company will not expose its shareholders to risks they are not willing to take and that several factors need to be considered before approving the project.
