U.S. President Donald Trump on Thursday signed an order granting a cross-border permit to a project that would revive parts of the Keystone XL pipeline to transport Canadian oil from the U.S.-Canada border to Guernsey, Wyoming.

The pipeline, proposed by Canadian pipeline company South Bow SOBO.TO and its U.S. partner Bridger Pipeline, could increase Canada’s crude exports to the U.S. by more than 12% if it goes ahead. A presidential permit was required for the project to proceed.

The new proposal involves a different route through the U.S. than the previous Keystone XL project, which was canceled by former President Joe Biden in 2021 after years of Indigenous and environmental opposition.

“Slightly different than the last administration,” Trump said at a White House event, referring to his administration’s attitude towards crude oil infrastructure. “They wouldn’t sign a pipeline deal, and we have pipelines going up.”

PROJECT TO USE SOME KXL PIPE But the project will use some of the previously built pipe on the Canadian side, where Keystone XL is already fully permitted. South Bow was spun off by former Keystone XL proponent TC Energy in 2024 to take over its oil pipeline business. Approximately 150 km (93 miles) of pipe has been built in Canada and sitting idle since Keystone XL’s cancellation.

Bridger Pipeline has proposed building a 645-mile pipeline to transport heavy Canadian oil through eastern Montana and eastern Wyoming.