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

President Barack Obama announced the decision at the White House after meeting with Secretary of State John Kerry.

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Obama said the Keystone pipeline would “not serve the national interests” of the U.S., adding that the project had an overly inflated role in the political discourse between both countries.

Prime Minister Justin Trudeau was disappointed but understood the decision, Obama said.

Killing the pipeline allows Obama to claim aggressive action on the environment, potentially strengthening his hand as world leaders prepare to finalize major global climate pact within weeks that Obama hopes will be a crowning jewel for his legacy. Yet it also puts the president in a direct confrontation with Republicans and energy advocates that will almost surely spill over into the 2016 presidential election.