TC Energy says it’s suspending work on the Keystone XL pipeline in anticipation of incoming U.S. president Joe Biden revoking its presidential permit Wednesday.
Biden is expected to revoke the permit for Calgary-based TC Energy’s pipeline in a flurry of executive orders after being sworn in as U.S. president on Wednesday.
Plans to revoke the permit for the $8 billion pipeline were first revealed on Sunday and sent shockwaves through Alberta, whose government has backed the project with a $1.5 billion investment, plus loan guarantees.
The move was expected as Biden issues sweeping order tackling climate change and begins the process of re-entering the Paris climate accord.
In a statement released Wednesday morning, TC Energy said it was disappointed in the move and warned it would lead to the layoff of thousands of unionized workers.
“TC Energy will review the decision, assess its implications, and consider its options,” it reads. “However, as a result of the expected revocation of the presidential permit, advancement of the project will be suspended.”
The company said the decision would “overturn an unprecedented, comprehensive regulatory process that lasted more than a decade.”
For months, Biden had said he intended to cancel the project if elected. He was being sworn in as the 46th U.S. president during inauguration ceremonies that began at 8 a.m. MT.
Prime MInister Justin Trudeau said he raised the issue with Biden prior to the inauguration and reaffirmed Canada’s support for the project.
Alberta Premier Jason Kenney, meanwhile, has said revoking the permit would damage the U.S.-Canada relationship and indicated the province might seek legal damages if the project was killed.