BILLINGS, Mont. (AP) — The sponsor of the Keystone XL crude oil pipeline pulled the plug on the contentious project Wednesday 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 (1,930-kilometer) pipeline began last year when former President Donal...