Canada scrambles to save Keystone XL pipeline

Canada is threatening to take legal action if U.S. President-elect Joe Biden goes ahead with a move to cancel the Keystone XL pipeline.

Scrapping the multibillion-dollar project would threaten jobs in Alberta - Canada's main oil-producing province.

A source told Reuters on Sunday that Biden will cancel a permit for the project over concerns about fossil fuels contributing to climate change

Alberta's Premier, Jason Kenney, said on Monday Biden's decision could hurt U.S.-Canada relations.

He's urged Prime Minister Justin Trudeau to reach out to Biden before he's inaugurated on Wednesday.

"That would be, in our view, that would be a serious economic and strategic error that would set back Canada, U.S. relations with the United State's most important trading partner, and strategic ally: Canada."

Kenney further threatened to seek damages for breaking global free trade agreements.

He said Alberta has invested over $780 million in the project since last year and construction of the pipeline is well underway.

The project faces fierce opposition from U.S. landowners, Native American tribes and environmentalists, but Kenney said the project can address broader climate issues and is mutually beneficial.

If completed, the pipeline would move hundreds of thousands of barrels of oil every day from Alberta to the U.S. state of Nebraska.

"Either the United States has access to environmentally responsible energy produced in a close democratic ally, or it becomes more dependent on foreign oil imports from Venezuela and other OPEC dictatorships in the future."

Outgoing Republican President Donald Trump had supported the project.

Reuters sources say Biden's decision is not yet final and could drag out for several weeks.