Washington, D.C., United States (AHN) – The U.S. State Department is reportedly denying a permit for the construction of Keystone XL, a 1,700-mile oil pipeline between Canada and the U.S. The news sent shares of TransCanada Corp., which will undertake the project, falling on Wednesday.

According to sources, the State Department will not issue the permit following the White House’s admission that it won’t meet the Feb. 21 deadline set by Congress to approve the pipeline that will transport Canadian bitumen to U.S. refineries in the Gulf Coast.

Meanwhile, 350.org, a group opposing the project, welcomed the news. Author, environmentalist and 350.org founder Bill McKibben said the denial of the Keystone XL permit is a victory for its opponents and a brave act of President Barack Obama.

McKibben said lobbyists for the project will still push American lawmakers to approve the project. Sen. John Hoeven (R-N.D.) plans to introduce a bill that will allow Congress to approve the $7 billion project.

Congress had given the State Department 60 days to decide on the project. The State Department, however, claimed that more time is needed to complete an environmental impact assessment on putting a pipeline in the sensitive Nebraska Aquifer, which is part of the proposed route of the pipeline.

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