"Rescinding the Keystone XL border crossing permit would damage the Canada-US bilateral relationship.” - Alberta Premier Jason Kenney
U.S. President Joe Biden on Wednesday formally revoked the permit needed to build the Keystone XL oil pipeline, dashing Ottawa's hopes of saving the $8 billion project that the struggling Canadian crude sector has long supported.
Earlier Wednesday, TC Energy had suspended work.
In a news release, it says it is "disappointed" with Biden's action, adding it will overturn extensive regulatory reviews that found the pipeline would transport needed energy in an environmentally responsible way and bolster North American energy security.
It warns the move will lead to the layoffs of thousands of union workers and comes despite its commitments to use more renewable energy and draft partnerships with Indigenous communities.
Earlier this week, Alberta Premier Jason Kenney threatened legal action if Keystone XL was scrapped.
Prime Minister Justin Trudeau said Canada was pressing people at the highest levels of Biden's administration to reconsider canceling the project.
The 2,735-kilometre (1,700-mile) pipeline would carry roughly 800,000 barrels of oil a day from Alberta to the Texas Gulf Coast, passing through Montana, South Dakota, Nebraska, Kansas and Oklahoma.