The developer of the Keystone XL pipeline halted all construction on the project months after its license was revoked by the Biden administration.
The pipeline was to carry oil 1,200 miles (1,900 km) from the Canadian province of Alberta to Nebraska.
Environmentalists and Native American groups fought the project for more than a decade.
President Donald Trump relaunched the pipeline in 2017, two years after it was rejected by President Barack Obama.
In a statement on Wednesday, Calgary-based TC Energy said it would work with regional regulators to dismantle their equipment and “ensure safe termination and exit” from areas where construction was planned.
On the first day of his tenure, President Joe Biden canceled a permit to allow the project to enter the United States, fearing it would worsen climate change.
Mr Biden’s move came over objections from US lawmakers, including members of his own party, who said the project would have created energy and construction jobs for American workers.
On Wednesday, a group of Republican senators introduced legislation that would require the Biden administration to take into account the number of jobs lost due to the project being canceled.
“The Keystone XL pipeline would have strengthened the energy independence of the United States while supporting thousands of well-paying jobs in the United States and Canada,” said Senator from Idaho and sponsor of the bill Jim Risch in a press release.
The group also condemned the Biden administration for lifting sanctions on the Nord Stream 2 project – a Russian gas pipeline intended to bring gas to Germany.
The bill, which is not expected to become law, would require the Secretary of Labor to report to Congress how many jobs would have been lost due to the project being canceled.
During a visit to US troops stationed in the UK on a trip to the G7 conference on Wednesday, Biden said climate change poses the “greatest threat” to US national security.
“This is no joke. You know what the Joint Chiefs told us that the biggest physical threat America faces is global warming,” he said.
“There will be significant population movements, fights for land, millions of people leaving the places because they are literally sinking under the sea in Indonesia, because of the fights for arable land,” he said. -he adds.