A major new crude oil pipeline proposed for the U.S. West could give a second life to the infrastructure of the terminated $8bn Keystone XL project. 

Known as the "Bridger Pipeline Expansion," the proposed project aims to transport up to 550,000 barrels per day. 

Bridger Pipeline LLC, a U.S.-based company behind the proposed pipeline, filed an application with Montana regulators to construct a 645-mile transmission line designed to move Canadian crude to Wyoming, paralleling much of the route once intended for the controversial Keystone system.

According to the filing with the Montana Department of Environmental Quality, the 36-inch diameter line would originate near the U.S.-Canada border in Phillips County, Montana—the exact location where Keystone XL was slated to cross.

With the Keystone XL stalled, industry analysts suggest the project offers a strategic opportunity to utilize "stranded" assets and routes, bringing back the Keystone XL pipeline to life in a new form. 

South Bow Corp., the company recently spun out of TC Energy to manage its liquids business, confirmed it is evaluating an expansion that would leverage existing infrastructure and permitted corridors in Canada. 

RBN Energy reports indicate that steel already laid for Keystone XL could be integrated into this new system, significantly reducing capital costs.

The proposal arrives amid a shifting political landscape, with the new administration pursuing more energy projects, including those stalled during the previous administration. 

While President Joe Biden revoked the Keystone XL permit in 2021, President Donald Trump has consistently advocated for its revival. 

In Canada, Prime Minister Mark Carney has signalled an openness to the project as a means of easing trade tensions, even as his government pushes to diversify exports beyond the U.S. market. 

Alberta Premier Danielle Smith has also expressed strong support for increasing crude-export capacity to the U.S. and other markets. 

The original Keystone XL, proposed in 2008, became a decade-long flashpoint for environmental and Indigenous opposition, leading to a revocation of its permit in 2021. 

While the Bridger project is a smaller-scale reconfiguration rather than a direct restart, it would still represent a 12.5% increase in Canadian oil exports to the U.S.

Bridger Pipeline intends to follow existing rights-of-way for much of the route to Guernsey, Wyoming. 

However, no final investment decision has been announced as the project awaits state and federal regulatory approvals.