Keystone XL developer to pull the plug on pipeline

  • Jun 10, 2021
  • Washington Examiner

TC Energy, the developer of the long-contested Keystone XL oil pipeline, is pulling the plug on the project, the company announced after the Washington Examiner first reported the decision.

The decision by the Canadian company to cancel the $8 billion project comes after President Joe Biden canceled a permit for the 2,000-mile pipeline that would have delivered crude from Canada's Alberta oil sands to refineries on the Gulf Coast.

The move, part of a day-one climate change executive order, drew backlash from Republican lawmakers and even some Democrats who said the cancellation would kill thousands of construction jobs.

After Biden's decision, TC Energy suspended work on the line. TC Energy confirmed Wednesday it is canceling the project.

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The company said that "it will continue to coordinate with regulators, stakeholders and Indigenous groups to meet its environmental and regulatory commitments and ensure a safe termination of and exit from the project."

Republican Sen. Steve Daines of Montana, in a statement, called the end of the project "devastating" and "entirely President Biden’s fault."

Former President Donald Trump had allowed the 2,000-mile Keystone XL oil pipeline to cross the border from Canada into the United States before Biden overturned the move.

Before that, Keystone XL had been stalled for more than a decade due to court challenges from environmental advocates worried about spills and climate change.

"This is yet another huge moment in an historic effort," said David Turnbull, strategic communications director with Oil Change International. "This project is finally being abandoned thanks to more than a decade of resistance from Indigenous communities, landowners, farmers, ranchers, and climate activists along its route and around the world."

Keystone XL was proposed in 2008. Then-President Barack Obama first rejected the Keystone XL in 2015 after the State Department considered a cross-border application for seven years.

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After Trump revived the project, TC Energy had begun some construction in the U.S. last year, but it was not expected to be operational until 2023.