The move comes months after President Joe Biden revoked a key permit for the pipeline.
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 Biden to reverse his cancellation of its permit on the day he took office.
The Albertan government reiterated Wednesday that the cost of backing the project is expected to be around $1.3 billion, in line with its estimate outlined in the most recent provincial budget.
"Having said this, Alberta will continue to play an important role in a reliable, affordable North American energy system", he says in the release.
TC Energy and the province said they would look at their options in the wake of the cancellation, but TC Energy said the pipeline extension was officially dead as of Wednesday. "We will work with our USA partners to ensure that we are able to meet USA energy demands through the responsible development and transportation of our resources".
The company said it would continue to look for opportunities in the energy transition and in powering existing US assets with renewable energy.
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"The fight to stop Keystone XL was never about one pipeline", Mackey said in a news release. "Today's decision is a culmination of the Trudeau Liberals' failure to recognize the importance of pipeline projects and the need to secure Canadian jobs in the resource sector".
Keystone XL would have increased Canadian export capacity by 830,000 barrels per day, running from Hardisty, Alta.to Steele City, Neb.
Previously, Alberta Premier Jason Kenney said the government would work with TC Energy to "to use all legal avenues available to protect its interest in the project".
"We remain undeterred in our commitment to stand up for Alberta's energy sector and the hard-working people it employs".
Construction on the 1,200-mile pipeline began previous year when former President Trump revived the long-delayed project after it had stalled under the Obama administration.