By Paul Vieira

OTTAWA--Canadian Prime Minister Mark Carney said he and President Trump have discussed the development of energy projects that would help both countries, including the twice-rejected Keystone XL expansion project.

Carney, who met with Trump this week in Washington, said the two leaders have talked about opportunities for cooperation between the two countries. "We have opportunities in the energy sector. There are many possible projects, including Keystone XL, but there are others," he said. He added senior Canadian and U.S. officials are now in intense talks about which energy projects might be worth pursuing.

The White House spokesperson was not immediately available for comment. Carney said officials have spoken with private-sector investors about the possibility of a Keystone XL revival, as well as other resource projects. He was not privy to those talks, he added.

The expansion of the Keystone XL project has been a source of friction between the U.S. and Canada, when former presidents Barack Obama and Joe Biden were in power. Obama denied TC Energy a presidential permit. Biden, shortly after taking office, revoked a permit that Trump has issued for the Keystone XL expansion to proceed.

The project would link to existing pipelines and deliver oil from western Canada to Nebraska. It has faced setbacks amid opposition from landowners and environmentalists. Earlier this year, Trump signaled his interest in having the pipeline built.

South Bow, which was spun off from TC Energy last year, is the Keystone pipeline owner, and earlier this year the company said it had moved on from the project. A company spokeswoman didn't immediately return Friday a request for comment. Earlier this week, amid local media reports that Carney and Trump have discussed the revival of Keystone XL at the Oval Office, South Bow said it supported efforts to increase the transportation of Canadian crude oil to foreign markets.

Talk of reviving the Keystone XL expansion emerges as Carney is pushing for the construction of so-called nation-building efforts, like infrastructure, trade corridors and resource projects, to help rewire an economy trying to reduce its reliance on a protectionist U.S. government. About one-fifth of Canada's economic output is tied to trade with the U.S., and has left the country after being exposed to Trump's hefty tariff policy.

Carney's discussions with Trump on energy projects are also aimed at securing tariff relief on some key sectors, such as steel and aluminum, officials say. Canada is the biggest foreign supplier of both those metals to the U.S., and Canadian-made steel and aluminum face 50% tariffs. Besides energy, U.S. and Canadian officials are in talks about a deal to ease the tariff burden on Canada, Carney said.

Write to Paul Vieira at paul.vieira@wsj.com

(END) Dow Jones Newswires

October 10, 2025 10:46 ET (14:46 GMT)

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