Canada's South Bow and U.S.-based Bridger Pipeline plan to jointly develop a new oil pipeline from Guernsey, Wyoming, to Cushing, Oklahoma, the companies said on Tuesday.

The proposed pipeline forms the third leg of a larger, multi-stage project designed to transport crude oil from Alberta, Canada, directly to the major storage and trading hub in Cushing.

The companies stated in an email that the project will be built along a corridor acquired from another firm, and noted that their immediate priority is engaging with local landowners and communities along the route.

While the companies declined to confirm specific acquisition details, a J.P. Morgan research report released last week indicated that the South Bow and Bridger joint venture acquired the right-of-way for the Liberty pipeline from Tallgrass Energy.

The original Liberty Pipeline was a canceled project intended to move oil to Cushing from production areas in the Rockies and North Dakota's Bakken region. Tallgrass Energy did not immediately respond to requests for comment.

The Guernsey-to-Cushing route is critical to unlocking regional energy bottlenecks. "The third leg is an imperative piece of the overall project," said Matthew Lewis, founder of Plainview Energy Analytics.

"There is currently no significant oil egress capacity out of that Wyoming/Colorado area to major hubs like Cushing. Thus, you need a major new build project to carry that oil."

The project integrates with the Prairie Connector, a separate pipeline proposed by South Bow and Bridger running from Alberta to Guernsey.

Backed by a cross-border permit signed by U.S. President Donald Trump in April, the Prairie Connector serves as a partial revival of the Keystone XL project, which was canceled in 2021 when former President Joe Biden revoked its permits.

Though taking a different U.S. route than Keystone XL, the Prairie Connector will utilize 93 miles of idle, pre-built pipe in Canada to connect to Bridger's proposed 645-mile line in Montana.

According to Canadian regulatory filings, South Bow plans to resume construction in mid-2027, targeting an operational date by late 2028.