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story.lead_photo.caption Committee Ranking Member Sen. Joe Manchin, D-WVa., speaks during a hearing to examine the nomination of former Gov. Jennifer Granholm, D-Mich., as she testifies before the Senate Energy and Natural Resources Committee during a hearing to examine her nomination to be Secretary of Energy, Wednesday, Jan. 27, 2021 on Capitol Hill in Washington. (Jim Watson/Pool via AP)

BILLINGS, Mont. (AP) — The sponsor of the Keystone XL crude oil pipeline said Wednesday it is pulling the plug on the contentious project after Canadian officials failed to persuade President Joe Biden to reverse his cancellation of its permit on the day he took office.

Calgary-based TC Energy said it would work with government agencies “to ensure a safe termination of and exit from” the partially built line, which was to transport crude from the oil sand fields of western Canada to Steele City, Nebraska.

Construction on the 1,200-mile pipeline began last year when former President Donald Trump revived the long-delayed project after it had stalled under the Obama administration.

It would have moved up to 830,000 barrels of crude daily, connecting in Nebraska to other pipelines that feed oil refineries on the U.S. Gulf Coast.

Biden canceled it in January over longstanding concerns that burning oil sands crude would make climate change worse.

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