Calgary-based TC Energy said it would continue to coordinate with regulators, stakeholders and Indigenous groups to meet its environmental and regulatory commitments and ensure a safe termination of the project.
"Looking forward, there is tremendous opportunity for TC Energy in the energy transition with its irreplaceable asset footprint, financial strength and organizational capabilities positioning it to capture further significant and compelling growth".
The 1,200-mile line, created to carry crude from Canada's oil sands through Montana, South Dakota and southern Nebraska, has faced years of pointed opposition from environmental and community groups, as well as a number of legal battles that landed the project before the U.S. Supreme Court.
Canada's TC Energy said Wednesday it has terminated the Keystone XL Pipeline project, throwing in the towel on a controversial initiative opposed by the Biden administration.
The Alberta government agreed a year ago to invest about $1.5 billion as equity in the project, plus billions more in loan guarantees in order to get the pipeline moving.
Alberta's investment in the Keystone pipeline included $1.5 billion in equity investment and a $6 billion loan guarantee in 2021.
Construction on the 1,200-mile (1,930-kilometer) pipeline began past year when former President Donald Trump revived the long-delayed project after it had stalled under the Obama administration. O fficials in Alberta, where the line originated, expressed frustration in recent weeks that Trudeau wasn't pushing Biden harder to reinstate the pipeline's permit.
"TC Energy's infrastructure plays a critical role in powering the North American economy, delivering the energy people need every day, safely and responsibly". The company and province plan to try to recoup the government's investment, although neither offered any immediate details on how that would happen.
Work on the project had been halted since January when President Biden revoked the Canadian company's presidential permit for the pipeline. That turned Keystone into a flashpoint in the climate debate, and it became the focus of rallies and protests in Washington, D.C., and other cities.
Environmentalists who had fought the project since it was first announced in 2008 described its cancellation as a "landmark moment" in the effort to curb the use of fossil fuels that contribute to climate change.
"We value the strong relationships we've built through the development of this Project and the experience we've gained", said François Poirier, TC Energy's President and Chief Executive Officer, in a press release from TC Energy.