U.S. President Donald Trump has reignited hopes in Canada’s energy heartland after suggesting the defunct Keystone XL pipeline project could be resurrected as part of ongoing cross-border trade negotiations.

“The great Keystone XL Pipeline, long ago killed by Sleepy Joe Biden, may be awoken from the grave,” Trump posted on Truth Social, hours before scheduled U.S. tariffs on $20 billion worth of Canadian goods were set to take effect.

The proposal offers a potential lifeline for the cross-border project, which was designed to carry roughly 830,000 barrels per day of heavy crude from Alberta to refineries on the U.S. Gulf Coast.

First proposed nearly two decades ago, the project was blocked by President Barack Obama in 2015, revived by Trump in 2017, and canceled again by President Joe Biden in 2021 over environmental concerns.

The hint of a revival comes as Prime Minister Mark Carney seeks to diversify Canada’s energy exports following new U.S. tariffs on Canadian automobiles, steel, and lumber.

In May, Ottawa and Alberta agreed to develop a west coast pipeline to ship 1 million barrels per day to Asian markets.

Alberta Premier Danielle Smith, who advocates doubling Canada’s current oil output of 6 million barrels per day, noted that clarity on the project's viability depends on the final terms of the U.S.-Canada trade agreement.

“Alberta wants to build new pipelines west, east, north, and south, and we are always in discussions with industry to support these opportunities,” Smith said.

Energy analysts view a Keystone XL revival as mutually beneficial, pointing out that Canada currently supplies over 4 million barrels per day to the U.S.—accounting for about 60% of total U.S. crude imports.

Industry experts suggest the project could enhance U.S. energy security as domestic shale production slows.

However, industry experts warn that expanding infrastructure to feed multiple pipelines will require around $100 billion in capital investments to boost Alberta’s oil sands production, alongside navigating lingering political uncertainties surrounding long-term trade relations between the two nations.