As secretary of state, Clinton presided over years of study of the Keystone XL pipeline that would send Canadian crude oil to US refineries. The project is vehemently opposed by environmental groups and liberal Democrats.
Clinton had used her former position as a rationale for not weighing in, saying she wanted President Barack Obama's administration to finalise its assessment on the project.
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"Therefore, I oppose it," she said yesterday.
The 1,179-mile (1,900-km) TransCanada-built pipeline would transport crude from oil sands in energy-rich Alberta province to a network of pipelines that reach across the US to the shores of the Gulf of Mexico.
Environmentalists have strongly opposed it because the crude comes from what they describe as "tar sands," which require a more carbon-intense process of extraction and processing, an issue Clinton addressed at a panel discussion with the Des Moines Register newspaper.
"I don't think we need to have a pipeline bringing very dirty oil, exploiting the tar sands in western Canada, across our border," Clinton said.
Because the project crosses a border, the US State Department must give its approval first, but the case is still being studied -- nearly seven years after TransCanada initiated its request.
Senator Bernie Sanders, who is challenging Clinton for the Democratic nomination, has been opposed to the project for years and has chided Clinton for her indecision.
"I'm glad that Hillary Clinton finally has made a decision on the Keystone XL pipeline and I welcome her opposition," Sanders posted on Twitter.
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