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Durability of the presidential permit is a gating item; failure to secure a durable permit could push capital expenditure and timeline risk further, pressuring SOBO's cash flow and project economics in the near term.
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South Bow will not partially revive the Keystone XL pipeline until a U.S. presidential permit is durable, signaling renewed regulatory hurdles for the project. The stance introduces near-term uncertainty to SOBO's capital plan and project timeline, with outcome depending on permit durability and political developments that could stretch timelines into next year.
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