There have been no new developments on the Keystone XL pipeline in 2025, as the project remains canceled after being abandoned by its developer in 2021 and the U.S. permit was revoked in January 2021. However, there have been recent discussions between the Canadian Prime Minister and U.S. President about the possibility of reviving the project, though experts note significant political and logistical challenges. In contrast, the separate, operational Trans Mountain pipeline has seen a major progress update, with its expansion becoming fully operational in May 2024.
Keystone
XL (the canceled project)
Status: The
Keystone XL project is considered canceled.
Recent Activity: In October 2025, the Canadian Prime Minister discussed the possibility of reviving the project with the U.S. President.
Obstacles: Revival
efforts face significant political and logistical hurdles.
Developer and Government Action: TC Energy abandoned the project in 2021, and the Alberta government has ended its partnership.
U.S.
Permit: The U.S. Presidential permit was revoked on January 20,
2021.
Trans Mountain Pipeline (the operational project)
Status: The
expansion is now fully operational.
Progress
in 2024: The expansion was completed in May 2024, nearly tripling the
original capacity.
Function: It connects from Alberta to the port of Burnaby, British Columbia, allowing Canadian crude to be shipped to new markets.
As of late 2025, the Keystone XL expansion project is officially terminated, with its former developer, TC Energy, having moved on. Recent political discussions in October 2025 about potentially reviving the project are considered highly unlikely to result in a new pipeline due to practical and business-related obstacles.
Why Keystone XL remains terminated
Developer has moved on: In 2024, TC Energy spun off its oil pipelines business, including the existing Keystone network, into a new company named South Bow. A South Bow spokesperson stated in early 2025 that the company had "moved on" from the Keystone XL project.
Permits have expired: Even with a U.S. presidential order rescinding the permit cancellation—which President Trump issued in January 2025—the project still faces significant hurdles. Many permits required for the project have expired and would need to be reacquired from the start.
Project infrastructure was dismantled: Parts of the previously constructed pipeline have been dismantled, and the project would have to begin from the ground up.
Competing projects fill market need: Alternative projects have reduced the market demand for a new, large pipeline. Enbridge's Line 3 replacement is now operational, and the Trans Mountain Expansion project is also complete, providing more capacity for Canadian crude oil.
Negative legal precedent: In July 2024, an international tribunal dismissed a $15 billion lawsuit from TC Energy against the U.S. government for revoking the project's permit, establishing a precedent that discourages similar future claims.
Political discussions in 2025
Despite
the project's cancellation, its potential revival resurfaced in
Canadian-American diplomatic conversations in 2025.
Canadian proposal: In October 2025, Canadian Prime Minister Mark Carney raised the idea of reviving Keystone XL during a meeting with U.S. President Donald Trump. The discussion was reportedly an attempt by Canada to ease ongoing U.S. tariffs on steel, aluminum, and other goods.
Trump's support: President Trump has consistently voiced support for reviving the pipeline, making statements in February 2025 pledging "easy approvals".
Limited corporate interest: South Bow, the company that would be responsible for any construction, has expressed support for increasing Canadian oil transport but has not been involved in the recent government discussions and has publicly stated it has moved on from the project.
Status
of the existing Keystone pipeline
The existing Keystone pipeline system continues to operate, transporting crude oil from Western Canada to the U.S.. Any further expansion or capacity optimization of this legacy system is a separate matter from the terminated Keystone XL project.
https://www.google.com/search?q=canadian+keystone+pipeline+progress+update+2025
Norb Leahy, Dunwoody GA Tea Party Leader
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