Canada’s TransCanada Corp. said Thursday that it will stop all pipeline construction from Alberta and Saskatchewan, citing an increase in environmental impacts as well as the need to protect the environment.
The company’s CEO, Craig McMillan, said that Kinder Morgan was in compliance with a 2016 order from the Federal Court of Appeal to halt construction of the Keystone pipeline project.
The order from a federal court in British Columbia came after TransCanada said it had received threats from groups that want the project to move forward.
The pipeline is expected to carry oil from Alberta’s oil sands to refineries on the Gulf Coast.
TransCanada has been battling the Federal Government for more than a year to complete the $7.8 billion pipeline project, which is expected be completed by 2020.
Kinder Morgan said in a statement that it was committed to the construction of this pipeline, but it was determined that the environmental impact assessments are not adequate for the project.
Kinder, based in Calgary, said it was “deeply disappointed” by the Federal Order.
“We are now moving to immediately halt construction on the Keystone project and will continue to do so as a matter of urgency,” Kinder said in the statement.
The Federal Court ruled in February that TransCanada was not in compliance to the 2016 order to halt Keystone pipeline construction.
“As a result of TransCanada’s continued failure to adhere to the Federal orders, the Court has decided that the company will be required to take further steps to implement and implement corrective actions,” the court said.
The court ruled in favour of Transcanada, the company that built the pipeline, and ordered the company to stop all construction of Kinder Morgan’s Keystone XL pipeline by the end of June 2020.
TranscanADA, which operates the pipeline system, was awarded $8 billion in federal funds in the 2016 funding package.
The Supreme Court of Canada will decide whether Transcanadas appeal will be heard next year.
The federal government has said it will appeal the decision, but is not expected to do it until the end, due to the lengthy legal process.
Kinder said that it would review the decision and take any necessary corrective action to ensure the project is safe and in the best interest of Canadian taxpayers.
Trans Canada said it has taken steps to address the environmental impacts associated with the project, including implementing an extensive study of the environmental risks associated with Keystone XL.
TransCanada has said that the court order does not address the company’s commitment to “fully implement its environmental commitments,” which includes addressing the environmental effects associated with construction of Keystone XL and reducing greenhouse gas emissions.
The U.S. State Department said last week that it is not reviewing the Federal Judge’s order and will review it at a later date.
“The State Department does not take any position on the merits of this case or the merits before the court,” spokesman Jonathan Kerstens said in an email.
The decision to halt work on the project comes at a time when the U.K. has said the U