* South Bow ( SOBO ) project could boost Canada's crude exports by

over 12%

* Canada's natural resouces minister discusses project

with US energy secretary and interior secretary

* Presidential permit needed for cross-border pipeline

section

By Amanda Stephenson

HOUSTON, March 24 (Reuters) - Canadian officials spoke

to Trump administration representatives about a proposed revival

of part of the cancelled Keystone XL oil pipeline in a meeting

in Houston this week, Canada's Natural Resources Minister Tim

Hodgson said Tuesday.

The project proposed by Canadian pipeline company South Bow ( SOBO )

and its U.S. partner Bridger Pipeline - which could increase

Canada's crude exports to the U.S. by more than 12% if it goes

ahead - was one of the topics Hodgson said he and Canada's

Ambassador to the U.S., Mark Wiseman, discussed with U.S. Energy

Secretary Chris Wright and U.S. Secretary of the Interior Doug

Burgum.

Canada is framing the prospect of a new cross-border oil

pipeline as a way it can help the U.S. achieve energy security

even as the war in Iran disrupts supplies and raises prices for

consumers, Hodgson said in an interview at the CERAWeek by S&P

Global conference.

"Yes, (the U.S.) are the largest producer of oil in the

world, they're at 12-13 million barrels per day. But they

consume 20," Hodgson said. "And they understand that Canada

provides about 63% of that difference."

President Donald Trump's tariff wars and annexation threats

have strained relations with Canada. But Trump has also

repeatedly called for lower oil prices and many U.S. refiners

depend on the roughly 4.4 million bpd of exports that Canada

sends south of the border.

Hodgson declined to say whether the Trump administration has

indicated that it will support the South Bow ( SOBO )/Bridger project or

make any attempt to fast-track the U.S. regulatory approvals

that are required.

"I would say they (Wright and Burgum) are thoughtfully

looking at all of the options to make sure the world has the oil

it needs to function," Hodgson said.

The White House did not immediately respond to a Reuters

request for comment.

Hodgson said he also made it clear during the meeting that

Canada is aggressively working to expand its oil exports to

non-U.S. markets by completing a planned 300,000 bpd expansion

of the Trans Mountain pipeline that runs from Alberta to the

Pacific Coast.

Prime Minister Mark Carney has been traveling the globe

courting new customers for Canadian energy in an effort to

reduce the country's reliance on the U.S. market.

"What we need to do, as the Prime Minister has said, is not

sell less to the United States. We need to sell more to other

people," Hodgson said.