Reports Outline Plan to Revive Keystone XL, Extend Dakota Access

A new strategy using a patchwork of connected pipeline projects could resurrect the Keystone XL pipeline and extend the Dakota Access Pipeline (DAPL) north into Canada, according to a report from Bing News. The plan, described as creating "Frankenpipelines," would utilize existing pipe infrastructure to achieve the goals of the previously blocked projects.

For Bakken operators, increased pipeline access to Canadian markets and export terminals has long been a strategic priority. The Dakota Access Pipeline currently runs from North Dakota's Bakken formation to a hub in Patoka, Illinois. An extension northward could provide new routing options and market access. The revived Keystone XL pathway would offer another major conduit for crude from Western Canada, which could compete for capacity with Bakken barrels on other systems.

The reported approach suggests a shift from attempting to build single, large-scale greenfield pipelines, which face significant regulatory and legal hurdles, toward linking and expanding existing infrastructure. This modular strategy may face fewer obstacles, though specific regulatory steps were not detailed in the report.

Any expansion of northbound pipeline capacity from the Williston Basin would potentially benefit producers by providing more direct access to Canadian heavy oil refineries and the Trans Mountain pipeline system, which leads to the West Coast for export to Asia. Enhanced connectivity between the Bakken and Canadian systems could improve pricing competitiveness and logistical flexibility.

The Bing News report did not specify a timeline or identify the companies behind the reported plan. The original Keystone XL project was canceled in 2021, while the Dakota Access Pipeline has operated since 2017 under ongoing legal scrutiny regarding its river crossing permits.