Alberta's Premier heads to Washington this weekend to get more details on why the U-S State Department delayed plans for a major Canadian pipeline project.

Alison Redford has said the U.S. decision is a setback to Alberta's oil industry.

Federal finance minister Jim Flaherty has also voiced his disappointment and suggests the Keystone X-L pipeline could die because of the U.S. delay.

Flaherty says Canada may need to look to other oil export markets, especially in Asia.

Approval for Calgary-based TransCanada's pipeline has been put off until early 2013 as alternate routes are examined.

Washington wants the project to avoid an important Nebraska aquifer and ecologically sensitive areas.

The $7 billion pipeline would carry crude from Alberta's oilsands to refineries in Texas.

The project has already been through a more than three-year regulatory process -- including studies of alternative routes.

It has also been strongly opposed by the U.S. environmental movement, sparking many high profile protests.