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“Too much capacity is not a big concern for the Canadian marketplace and producers right now,” Pickering said. “It gives us room down the road to increase production.”

Canadian oil producers such as Suncor Energy Inc., Cenovus Energy Inc. and Imperial Oil Ltd. have sold their heavy crude at discounts to West Texas Intermediate futures of as much as $40 a barrel in recent years amid constraints in pipeline space. Western Canadian Select’s discount to WTI averaged about $14 a barrel over the past year, data compiled by Bloomberg show. That may shrink to $5 to $7 a barrel should all three lines get built, Pickering said.

More pipelines from Canada would also “generate greater competition for crudes of comparable quality such as those imported from Mexico or Venezuela,” Harry Tchilinguirian, head of commodity-markets strategy at BNP Paribas SA in London, said in an instant message.

The administration moved to expedite approval and construction of the Keystone XL pipeline as well as the Dakota Access line through North Dakota. Trump said he wanted to renegotiate terms to get a better deal for the U.S., including more U.S.-made materials in the lines.

The 830,000-barrel-a-day Keystone XL has been blocked since it was first proposed in 2008. TransCanada said in a statement it will reapply for the project.

The approval of Keystone XL and other lines “will mean better netbacks to producers,” Tim McMillan, chief executive officer of the Canadian Association of Petroleum Producers, said in a phone interview Tuesday. “It’s really just a more efficient system for our economy.”