After over seven years of regulatory battles, the Obama administration has officially killed TransCanada’s Keystone XL pipeline.
The White House said on Friday that President Obama decided to reject the $8 billion pipeline after the U.S. State Department concluded the project would not “serve the national interest.”
“America is now a global leader when it comes to taking serious action to fight climate change. And frankly, approving this project would have undercut that global leadership,” President Obama said.
Calgary-based TransCanada said Friday that it will review all of its options, including the possibility of filing a new application to receive a Presidential Permit for a cross border crude oil pipeline from Canada to the United States.
“We are disappointed with the President’s decision to deny the Keystone XL application. Today, misplaced symbolism was chosen over merit and science – rhetoric won out over reason,” TransCanada president and CEO Russ Girling said.
Recently elected Canadian Prime Minister Justin Trudeau said on Friday that he was disappointed by the decision but he will continue to collaborate with the United States on a host of issues.
“We are disappointed by the decision but respect the right of the United States to make the decision….The Canada-U.S. relationship is much bigger than any one project and I look forward to a fresh start with President Obama to strengthen our remarkable ties in a spirit of friendship and co-operation,” Trudeau said.
The rejection came just days after TransCanada asked the State Department to suspend its review of the pipeline, citing the ongoing legal challenges the project faced in Nebraska.
The State Department confirmed last Wednesday that it refused to grant the suspension.
TransCanada also dropped plans last Thursday to construct an oil port in Quebec as part of its East Energy Pipeline project.
The company said it will amend its application for the Energy East Pipeline project with the National Energy Board to remove the port after receiving feedback from local communities, key stakeholders and its customers.
TransCanada will be sending the NEB amendments to the Energy East application, including the cancellation of the port, in the fourth quarter of 2015.
The 1.1. billion barrel per day pipeline is expected to come online by 2020.