The US president announced on Thursday he was canceling the $3.7 billion BP Central Pipeline, which is being built in South Texas to carry crude oil from the Bakken region of North Dakota to the Gulf Coast.
“The decision is based on the fact that we have identified no other viable alternatives to the pipeline, and the cost of developing and operating the pipeline exceeds its projected cost,” Biden said.
The pipeline was set to be completed in late 2018, and was due to run from the Gulf of Mexico to Texas refineries.
However, the US Army Corps of Engineers and the Texas Commission on Environmental Quality (TCEQ) have said the pipeline’s environmental impact assessment has not been completed, which will likely lead to its cancellation.
According to the Texas Tribune, Biden’s decision means the Central Pipeline would not be built until 2019 at the earliest.
However there is still a chance that the project could be revived if the US government decides to move forward with new environmental rules that would limit the number of oil pipelines built.
BP has been working on the pipeline since 2014, but was unable to finish the project due to the ongoing protests in North Dakota.
BP said the US Environmental Protection Agency (EPA) “will not grant a permit to complete the pipeline” due to its impact on public health and the environment.
The company’s statement said it would continue to fight the decision, saying that it would “continue to fight for the safety and well-being of our communities”.
BP also said the company is reviewing its legal options, but that it did not believe the pipeline was in the national interest.
BP also confirmed the cancellation of the pipeline had not been approved by the US National Petroleum Council (NPC), a body set up by the Obama administration to oversee and regulate the use of petroleum products in the US.
It was not clear what the impact of Biden’s announcement will be on BP’s North American operations, but it is understood the company has halted production at its North American facilities.
The president’s decision has not yet been announced by the White House, which has not commented publicly on the decision.
The decision is not the first time Biden has been forced to reconsider his decision to cancel the project.
Earlier this year he also scrapped the Dakota Access Pipeline.