Barack Obama rejects Keystone XL pipeline

The Obama administration has rejected TransCanada's application to build the Keystone XL pipeline, capping a seven-year saga that became an environmental flashpoint in both Canada and the U.S.

Speaking from the White House on Friday, Obama said Keystone "will not serve the national interests of the United States." 

Obama said the State Department rejected the proposed pipeline, saying it would not make a meaningful long-term contribution to the U.S. economy.

The U.S. president said he has informed Justin Trudeau of the decision.

"While he expressed his disappointment, given Canada's position on this issue, we both agreed that our close friendship on a whole range of issues — including energy and climate change — should provide the basis for an even closer co-ordination between our countries going forward," Obama said."

Despite the rejection, TransCanada's top executive said he continues to believe that a pipeline will eventually be built.