Keystone XL Pipeline Officially Cancelled After President Biden Revokes Permit

The Keystone XL pipeline has been officially cancelled after U.S. President Joe Biden revoked a key permit needed for the American stretch of the 1,200-mile project.

The $9-billion oil pipeline, which had been in development since 2008, aimed to bring oil from western Canada to U.S. refiners. However, TC Energy (TSX:TRP) has now cancelled the project after Biden revoked the permit needed for the U.S. portion of the pipeline.

The Keystone XL pipeline was expected to carry 830,000 barrels per day of Alberta oil sands crude to Nebraska, but the project was delayed for the past 12 years due to opposition from U.S. landowners, indigenous groups and environmentalists.

Opponents claimed that the pipeline was unnecessary and would hamper the U.S. transition to cleaner fuels. Its demise comes as other North American oil pipelines, including Dakota Access and Enbridge Line 3, face continued opposition from environmental activists. ?

TC Energy owns the existing Keystone oil pipeline, which runs from Alberta to an oil storage hub in Cushing, Oklahoma, and to the U.S. Gulf Coast, along with a power and storage business. It pledged to ensure a safe termination of the project.

"We remain disappointed and frustrated with the circumstances surrounding the Keystone XL project, including the cancellation of the presidential permit for the pipeline’s border crossing," Alberta Premier Jason Kenney said in a written statement.

Former U.S. President Donald Trump had approved a permit for the Keystone XL pipeline in 2017, but it continued to face legal challenges that delayed its construction. Biden had committed to canceling the project during his election campaign last fall.