Kinder Morgan Canada (KML) is suspending all non-essential activities and spending on the Trans Mountain Expansion Project.
They say they cannot move forward under the current circumstances.
KML will consult with various stakeholders in an effort to reach agreements by May 31 that may allow the project to proceed.
"We will be judicious in our use of shareholder funds," said Chairman and CEO Steve Kean. "In keeping with that commitment, we have determined that in the current environment, we will not put KML shareholders at risk on the remaining project spend."
The project has the support of the federal government, Alberta and Saskatchewan, but faces continued active opposition from the government of British Columbia.
"A company cannot resolve differences between governments. While we have succeeded in all legal challenges to date, a company cannot litigate its way to an in-service pipeline amidst jurisdictional differences between governments," added Kean.
"Today, KML is a very good midstream energy company, with limited debt. The uncertainty as to whether we will be able to finish what we start leads us to the conclusion that we should protect the value that KML has, rather than risking billions of dollars on an outcome that is outside of our control," Kean said.
"To date, we have spent considerable resources bringing the project to this point and recognize the vital economic importance of the project to Canada. Therefore, in the coming weeks we will work with stakeholders on potential ways to continue advancing the project consistent with the two principles previously stated."
Federal Natural Resources Minister Jim Carr has called on the government of British Columbia to suspend all threats of delay to the Trans Mountain expansion.
"Those are strong words, but we need more. We are calling on the federal government to act in the defence of Alberta and working people in Western Canada," said Alberta premier Rachel Notley.
Notley claimed Ottawa has stepped up to help the auto and aerospace industry, and now must act to help the energy industry.
"We call on them to act with concrete action. Federal approval of a project must be worth more than the paper it is written on."
"Never count Alberta out. This pipeline will be built."