BILLINGS, Mont. (AP) — The sponsor of the Keystone XL crude oil pipeline said Wednesday it is pulling the plug on the contentious project after Canadian officials failed to persuade President Joe Biden to reverse his cancellation of its permit on the day he took office.
Calgary-based TC Energy said it would work with government agencies “to ensure a safe termination of and exit from” the partially built line, which was to transport crude from the oil sand fields of western Canada to Steele City, Nebraska.
Construction on the 1,200-mile (1,930-kilometer) pipeline began last year when former President Donald Trump revived the long-delayed project after it had stalled under the Obama administration.
It would have moved up to 830,000 barrels (35 million gallons) of crude daily, connecting in Nebraska to other pipelines that feed oil refineries on the U.S. Gulf Coast.
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Biden canceled it in January over longstanding concerns that burning oil sands crude would make climate change worse.
Canada Prime Minster Justin Trudeau objected to the move, but officials in Alberta, where the line originated, expressed disappointment in recent weeks that he didn’t lobby harder to reinstate the pipeline’s permit.
Attorneys general from 21 states had sued to overturn Biden’s cancellation of the contentious pipeline, which would have created thousands of construction jobs.
Senator John Barrasso, R-Wyo., ranking member of the Senate Committee on Energy and Natural Resources, placed the blame for the cancellation on Biden.
“President Biden killed the Keystone XL Pipeline and with it, thousands of good-paying American jobs,” Barrasso said in a statement. “On Inauguration Day, the president signed an executive order that ended pipeline construction and handed one thousand workers pink slips. Now, ten times that number of jobs will never be created. At a time when gasoline prices are spiking, the White House is celebrating the death of a pipeline that would have helped bring Americans relief.”
Ledyard King contributed reporting.