Trans-Canada to start on southern pipeline

July 28, 2012 at 12:37 PM
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CUSHING, Okla., July 28 (UPI) -- Trans-Canada said it had received the final permit it needed to start work on a $2.3 billion leg of the Keystone XL pipeline.

The permit allows for the most southern portion of the pipeline to get underway, said Trans-Canada Chief Executive Officer Russ Girling in a conference call.

The southern stretch of 36-inch in diameter pipeline will go from Cushing, Okla., to Nederland, Texas, giving refineries along the Gulf Coast access to domestic crude oil, which is cheaper than the imported stuff, the Houston Chronicle reported Saturday.

Domestic oil is also becoming more plentiful, production having risen by 700,000 barrels per day since 2009.

A few homeowners in Texas are holding out on granting the company permission to traverse their property, but the firm said that would not prevent construction from starting up this summer.

A major obstacle on the project is the envisioned northern section of the pipeline. The Obama administration rejected a proposal for the northern section, which included a cross-border route from Alberta, Canada, through Nebraska.

The administration left the door open for a revised proposal, which Trans-Canada is developing.

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