The Keystone XL pipeline has been canceled after Biden withdrew its U.S. permit

Construction of the controversial Keystone XL pipeline was officially completed on Wednesday, giving a major victory to environmentalists who had fought for more than a decade as their battles intensified against the development of other fossil fuels.

The decision by TC Energy and the Alberta government to pull the $ 8 billion pipeline was long overdue after Joe Biden denied permission to build his American leg in one of his first acts as president.

“We remain disappointed and frustrated by the circumstances surrounding the Keystone XL project, including the cancellation of the presidential permit for the border crossing of the pipeline,” said Alberta Prime Minister Jason Kenney.

The project, which would have brought bitumen from the oil sands of northern Alberta to the Gulf Coast refineries, had been opposed from the outset and became a symbol of the political confrontation over the future of the fossil fuels in the US.

It was blocked in 2015 by then-President Barack Obama, who said it would undermine U.S. attempts to address climate change. But Donald Trump signed an order to push it forward during his first week in office. Biden’s decision to revoke the permit fulfilled a promise made on the campaign trail.

In Canada, where politicians had pressured to keep the project alive, Biden’s decision was received with dismay. This was especially true in Alberta, where the province had taken a $ 1.1 billion stake in the project and lent TC Energy another $ 4.7 billion to pay for construction. About 150 km of the pipeline had already been installed in the Canadian province.

The project employed about 2,500 people in the U.S. and Alberta during last year’s construction peak. But construction activity had been suspended since Biden’s decision to undo the permit.

The production of Canada’s ultra-heavy oil fields consumes more carbon than most other forms of crude oil, making Keystone a target for environmentalists, who argue that new pipeline projects encourage continued production of fossil fuels in a moment when the world needs to reduce its emissions.

“Keystone XL has been a symbol for the challenges the industry has faced in getting high-profile projects built not only in western Canada, but across North America,” the Moody’s analyst said. Gavin MacFarlane.

Other pipeline projects have also faced serious opposition. The expansion of Enbridge Line 3, which would also carry more Canadian oil to the south, has seen clashes between environmentalists and police in recent days. And the future of the Dakota Access pipeline, which transports oil from the Bakken shale floor in North Dakota to the rest of the U.S., remains undecided after a judge ordered a new environmental review.

Utilities Dominion Energy and Duke Energy last year undid the $ 8 billion Atlantic Coast Pipeline project after prolonged litigation and delays in shipping costs.

Wednesday’s capitulation was well received by environmental groups, who vowed to continue fighting pipes in other parts of the US.

“The fight to stop Keystone XL never consisted of a pipeline,” said Kendall Mackey, 350.org campaign director. “The completion of this zombie pipeline is a precedent for President Biden and the polluters to stop Line 3, Dakota Access and all fossil fuel projects.”