BILLINGS, Mont. (AP) The sponsor of the Keystone XL crude oil pipeline pulled the plug on the 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, Neb.
Construction on the 1,200-mi. 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.
Biden canceled the pipeline's border crossing permit in January over longstanding concerns that burning oil sands crude could make climate change worse and harder to reverse.
Canadian Prime Minister Justin Trudeau had objected to the move , raising tensions between the U.S. and Canada. Officials in Alberta, where the line originated, expressed frustration in recent weeks that Trudeau wasn't pushing Biden harder to reinstate the pipeline's permit.
Alberta invested more than $1 billion in the project last year, kick-starting construction that had stalled amid determined opposition to the line from environmentalists and Native American tribes along its route.
On Montana's Fort Belknap Reservation, tribal president Andy Werk Jr. described the end of Keystone as a relief to Native Americans who stood against it out of concerns a line break could foul the Missouri River or other waterways.
TC Energy said in canceling the pipeline that the company is focused on meeting "evolving energy demands" as the world transitions to different power sources. It said it has $7 billion in other projects under development.
Keystone XL's price tag had ballooned as the project languished, increasing from $5.4 billion to $9 billion. Meanwhile, oil prices fell significantly — from more than $100 a barrel in 2008 to under $70 in recent months — slowing development of Canada's oil sands and threatening to eat into any profits from moving the fuel to refineries.
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