Trump Approves 'Keystone Light' Pipeline With Potential Bakken Tie-Ins

U.S. President Donald Trump has approved a major new pipeline project with potential future implications for Bakken crude oil takeaway capacity. On Thursday, Trump signed a presidential permit authorizing the Bridger Pipeline Expansion, a project dubbed "Keystone Light," according to a report from OilPrice.com.

The 647-mile, 36-inch pipeline is proposed by Bridger Pipeline LLC, a subsidiary of True Companies. It would transport Canadian crude from the U.S.-Canada border in Phillips County, Montana, to Guernsey, Wyoming, at an estimated cost of $2 billion. Construction is expected to begin in 2027, targeting completion by late 2028 or early 2029.

While its primary stated purpose is to move up to 550,000 barrels per day (bpd) of Canadian crude, company maps and plans show the project includes potential tie-ins for North Dakota's Bakken shale oil field. The design provides access to a significant portion of Bridger's existing North Dakota gathering network.

"This optionality positions the project for potential future expansion beyond 550,000 bpd and creates the possibility of a new competitive egress option for Bakken shippers," Matthew Lewis, founder of Plainview Energy Analytics, told OilPrice.com. Analysts note that batching light crude oil could allow the line's capacity to eventually exceed 1 million bpd.

The project revives portions of the canceled Keystone XL route but largely avoids some historical flashpoints by not crossing Native American reservations, the report states. However, it is expected to face significant opposition from environmental groups, Indigenous communities, and landowners.

The Montana Environmental Information Center (MEIC) has raised concerns about spill risks and environmental impacts, specifically citing a 2015 incident where a Bridger Pipeline leak spilled over 30,000 gallons of oil into the Yellowstone River near Glendive, Montana, contaminating the city's water supply. Groups including WildEarth Guardians and Earthjustice have expressed similar concerns.

For Bakken operators and royalty owners, the approval represents a long-term prospect for additional pipeline capacity out of the region. The potential connection to Bridger's North Dakota network could offer a new route to market for shale oil produced in the Williston Basin, pending future expansion of the project beyond its initial Canadian-focused volume.