Commodities
Market Chatter: Alberta-to-Wyoming Crude Pipeline Project Nears Minimum Shipping Commitments
A proposed pipeline to carry Canadian crude to the US is nearing the minimum shipper commitments needed to move forward, Reuters reported on Tuesday.The Alberta-to-Wyoming project, backed by South Bow and US partner Bridger Pipeline, could boost Canada's crude exports to the US by over 12%, easing long-standing transportation constraints. The project recently gained momentum after US President Donald Trump signed a cross-border permit, reversing years of uncertainty following the cancellation of Keystone XL in 2021.The plan would reuse about 93 miles of idle pipeline in Canada and connect it to a new 645-mile line through Montana to Guernsey, Wyoming. Shippers have already committed roughly 400,000 barrels per day, about 72% of the initial 550,000 bpd capacity. Developers are targeting 450,000 bpd under long-term contracts, the typical threshold for proceeding. The system could eventually carry up to 1.13 million bpd.Neither South Bow Corp nor Bridger Pipeline immediately responded to requests for comment by.Major Canadian producers, including Cenovus Energy and Canadian Natural Resources, are among those backing the project, alongside several mid-sized firms. While companies declined to comment, industry engagement is described as strong, with momentum building toward final commitments.The push reflects a broader need for more export capacity. Canada produces about 5.5 million bpd, expected to rise to 6.1 million by 2030, but pipeline bottlenecks have long constrained growth.Other companies are also expanding capacity. Enbridge is adding 150,000 bpd to its Mainline and Flanagan South systems by 2027, with a possible second phase adding another 250,000 bpd.Meanwhile, the Trans Mountain pipeline is planning upgrades that could increase capacity by 360,000 bpd.Bridger's route follows existing infrastructure corridors, which may ease permitting. However, Guernsey is not a major refining hub, meaning additional connections would be needed to reach key markets such as Cushing, Patoka, and the Gulf Coast, the report said.(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)