The company earlier this month officially canceled the $9 billion project after U.S. President Joe Biden revoked a key permit needed to build it on his first day in office in January.
TC Energy said on Friday it had filed a notice of intent to begin a legacy North American Free Trade Agreement (NAFTA) claim under the United States-Mexico-Canada agreement.
The project, which was planned to carry 830,000 barrels of heavy crude per day across the border from Alberta in Canada to Nebraska, had been delayed for over a decade following opposition from U.S. landowners, Native American tribes and environmentalists.
The company had booked a C$2.2 billion ($1.79 billion)impairment charge to its first-quarter results in May related to the suspension of construction on the project.
($1 = 1.2321 Canadian dollars)