Canadian Oil Minister Joe Oliver said oil sands development would go forward, no matter what the State Department decided on the line.
"We remain committed to developing the oil sands, a proven strategic resource for Canada that create jobs and economic opportunity for Canadians in all provinces and regions in the country," he said.
As complications for Keystone mounted, another project that would drain some of the Midwest glut, but not extend into Canada, took a step forward.
Enbridge Inc said on Wednesday it would likely proceed with its 800,000 barrel-per-day Wrangler pipeline from the Cushing storage hub in Oklahoma to Gulf of Mexico refineries.
Pat Daniel, Enbridge's chief executive, said his company and partner Enterprise Product Partners had received strong interest from would-be shippers on the line.
While Enbridge is still discussing terms and conditions with shippers, the company said there was enough interest for both Wrangler and an expansion of its line from Illinois, to Cushing to proceed.
"We expect to conclude those discussions with sufficient volumes to proceed with both segments of the line," Daniel said.