The U.S. permit for the Keystone XL pipeline has officially been rescinded.
Newly sworn-in President Joe Biden revoked the permit on Wednesday as one of his first actions in office. Former President Donald Trump approved the project back in early 2020.
The pipeline would be nearly 2,000 km long, connecting Hardisty, Alberta, to Steele City, Nebraska. It would transport around 830,000 barrels per day to Gulf Coast Refineries.
This doesn’t come as a surprise as CBC News reported earlier this week Biden was planning to do so, while he’s been vocal in the past against the project.
Premier Jason Kenney says this is an ‘insult’ and ‘gut-punch’ to Canada and Alberta.
“This decision was made without even giving Canada the opportunity, respectfully, to make the case for how Keystone XL would strengthen U.S. national and energy security, how it would bolster both economies, and how are two countries could find a path together on climate and environmental policies.”
Prime Minister Justin Trudeau, who supported the project, did claim he had recently spoken to Biden about the importance of the project.
“We’ve had a clear and consistent position supporting this project for years. Our government is making sure that Canada’s views are heard and considered by the incoming administration at the highest levels,” he stated during his Tuesday COVID-19 update.
Kenney is also calling on the federal government to consider economic sanctions if the new U.S. government won’t listen to their concerns over canceling the project.
The government of Alberta has already invested $1.5 billion dollars in the pipeline, with plans to provide an additional $6 billion this year.
Meanwhile, TC Energy, which oversees Keystone, had halted work ahead of the expected decision.
The company says this decision could result in the loss of thousands of jobs across both countries. In Alberta alone, the project was expected to create around 1,400 direct and 5,400 indirect jobs.
They, along with the GoA, plan on considering all options to keep the project alive.