CALGARY — TC Energy Corp. says it is walking away from the Keystone XL pipeline project and ending a decade-plus battle that pitted the energy industry against environmentalists as oilsands producers sought to export Canadian crude.
Construction on the pipeline was suspended earlier this year after newly elected U.S. President Joe Biden fulfilled a campaign promise to cancel its presidential permit in January.
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, Nebraska.
Some 200 kilometres of pipeline have already been laid, including across the Canada-U.S. border. The Keystone XL project was first approved by the National Energy Board in 2007.
Construction on the 1,930-kilometre 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 it in January over longstanding concerns that burning oil sands crude would make climate change worse.
Attorneys general from 21 states had sued to overturn Biden’s cancellation of the pipeline, which would have created thousands of construction jobs.
TC Energy last month took a $2.2-billion writedown on the cancelled project, which pushed the company to a loss in its most recent quarterly earnings.
The Alberta government in March 2020 agreed to take a $1.5 billion equity stake in Keystone and provide a $6 billion loan guarantee to ensure work started immediately.
The government said Wednesday its final costs are expected to be $1.3 billion.