Two energy companies announced plans to build a new crude oil pipeline from Guernsey, Wyoming, to the storage hub at Cushing, Oklahoma — a move that could alter flows between Western Canada, the U.S. Rockies and one of America’s busiest trading points. South Bow and Bridger Pipeline say the route is the missing link in a larger effort to route Canadian crude to Gulf Coast markets, and the project is advancing at a moment when cross‑border pipeline authorizations and regional capacity are again under scrutiny.
The partners told Reuters they will jointly develop the proposed line along a corridor they acquired from another firm, and that early outreach to landowners and communities on the route is a priority.
Industry analysts view the new stretch as the final piece of a three‑leg chain intended to carry crude from Alberta to Cushing. A J.P. Morgan note last week said a venture between South Bow and Bridger obtained the former right‑of‑way for the cancelled Liberty project from Tallgrass Energy, clearing the path to reuse existing corridor assets.
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Why this matters now: Cushing is a central pricing and storage hub for U.S. crude. Adding direct capacity from Wyoming would relieve a supply bottleneck in the Rockies and could shift export patterns from Canada — potentially affecting regional freight, refinery feedstock and local economies.
Bridger and South Bow declined to provide full details on the transaction, and Tallgrass did not immediately respond to a request for comment. Reuters reported the companies’ announcement Tuesday.
South Bow is also advancing the Canada‑to‑Guernsey segment known as the Prairie Connector, a project that would increase Canada’s ability to export crude to the United States by more than 12% if completed. That plan partly relies on about 150 km of pipe already laid in Canada and currently idle, which would link into Bridger’s proposed U.S. line in Montana and extend roughly 645 miles (about 1,038 km) to Guernsey.
Political context remains relevant: a cross‑border permit issued in April revived a route concept similar to Keystone XL, which had its permit revoked in 2021. Backers say the permit decision has helped restart momentum for pipelines that would open new export channels for Canadian producers.
Matthew Lewis, founder of Plainview Energy Analytics, described the Guernsey–Cushing leg as essential, noting the region currently lacks significant throughput capacity out of Wyoming and Colorado to major hubs such as Cushing. “You need a substantial new build to move that crude to market,” he said.
- Route: Guernsey, Wyoming → Cushing, Oklahoma
- Ownership: Joint development by South Bow (Canada) and Bridger Pipeline (U.S.)
- Right‑of‑way: Corridor acquired from the former Liberty pipeline (Tallgrass)
- Connection to larger plan: Completes a three‑leg chain linking Alberta to Cushing; ties to Prairie Connector
- Distances: ~150 km of existing pipe in Canada; ~645 miles (1,038 km) from the Montana connection to Guernsey
- Timing: South Bow has signaled a restart of work on its segment in Q2 2027, with in‑service targeted around Q4 2028 (per regulatory filings)
Regulatory filings with the Canada Energy Regulator show South Bow has secured the shipper commitments it sought to move the Prairie Connector segment forward. That commercial backing is a key step for finance and construction planning, but project timelines still depend on permitting, landowner agreements and detailed engineering.
Local landowners and communities along the proposed route will likely play a decisive role as the companies begin outreach. Environmental groups and some regional stakeholders have previously opposed similar projects, citing concerns about spills, habitat disruption and greenhouse‑gas emissions, while proponents point to economic activity and increased market access for producers.
For traders and refiners, the new linkage could change crude flows into the U.S. midcontinent and Gulf Coast, with knock‑on effects for freight demand and basis differentials at Cushing. For Canadian producers, the pipeline promises additional export avenues at a time when pipeline capacity has constrained market access and pressured differentials for some grades of crude.
Details remain limited. South Bow and Bridger have not publicly released final engineering plans or the full terms of the right‑of‑way acquisition, and Tallgrass has not commented on the reported sale of the Liberty corridor. Observers will be watching the permitting calendar and community consultations for signals about the project’s pace.
Reporting by Reuters; additional reporting and analysis by industry sources.
