The Canadian company behind the Keystone XL pipeline said it had suspended work on the project in anticipation of its license being revoked by US President Joe Biden.
The Canadian company behind the Keystone XL pipeline said on Wednesday it had suspended work on the pipeline in anticipation of its license being revoked by new US President Joe Biden.
Biden’s Day 1 plans included revoking a presidential permit for the pipeline.
The 2,735 km (1,700 mile) pipeline would transport approximately 800,000 barrels of oil per day from Alberta to the Gulf Coast of Texas, passing through the US states of Montana, South Dakota, Nebraska, from Kansas and Oklahoma.
“Due to the planned revocation of the presidential permit, progress of the project will be suspended,” Calgary, Alta., Based TC Energy Corp said in a statement.
First proposed in 2008, the pipeline has become emblematic of the tensions between economic development and the reduction of fossil fuel emissions that cause climate change.
The administration of former US President Barack Obama rejected the project, but President Donald Trump revived it and was a staunch supporter. Construction of the pipeline has already started.
Kirsten Hillman, Canada’s Ambassador to the United States, said Canada must move on now that Biden has made a decision.
“Of course, we are disappointed. We’ve been working hard over the past few months to try to defend Keystone XL, ”Hillman told CBC / Radio-Canada.
“He made a commitment during his campaign and he kept that commitment. I think we have to accept this and move on.
Canadian Prime Minister Justin Trudeau made Keystone XL a top priority when he spoke with Biden in a phone call in November. The project aims to increase essential oil exports for Canada, which has the third largest oil reserve in the world.
Jason Kenney, premier of the oil-rich province of Alberta, said Tuesday evening he had urged Trudeau to tell Biden that “canceling the Keystone XL border crossing permit would hurt the bilateral Canada-U.S. Relationship “.
Trudeau and Biden are politically aligned and there are expectations for a return to normal relations after four years of Trump, but the pipeline is an early irritant as Biden has long said he will cancel it.
Trudeau tried to balance the oil industry’s desire for more pipelines with the concerns of environmentalists. He canceled a major pipeline to the Pacific coast from oil-rich Alberta, but approved another and instituted a national carbon tax.