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Keystone XL pipeline sponsor abandons project after Biden permit block

BILLINGS, Mont. (AP) – Pipeline sponsor Keystone XL said on Wednesday it was shutting down the contentious project after Canadian officials failed to persuade President Joe Biden to reverse the cancellation of his permit on the day upon taking office.

Calgary-based TC Energy said it would work with government agencies “to ensure safe termination and exit” of the partially constructed line, which was to transport crude from the oil sands fields in western Canada to Steele City, Nebraska.

Construction of the 1,200-mile (1,930-kilometer) pipeline began last year when former President Donald Trump relaunched the long-delayed project after it was stalled under the Obama administration.

It is said to have moved up to 830,000 barrels (35 million gallons) of crude per day, connecting Nebraska to other pipelines that supply oil refineries on the US Gulf Coast.

Biden canceled it in January over long-standing concerns that burning crude oil from the tar sands would worsen climate change.

Canadian Prime Minister Justin Trudeau opposed the move, but officials in Alberta, where the line originates from, have expressed disappointment in recent weeks that they have not pushed more to reinstate the pipeline’s license.

Attorneys general in 21 states had filed a lawsuit to overturn Biden’s cancellation of the disputed pipeline, which would have created thousands of construction jobs.

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