Pauls Valley, OK, Pauls Valley Democrat

State News

February 28, 2012

TransCanada ready to build Keystone XL pipeline from Cushing to the Gulf Coast

“The Gulf Coast Project will transport growing supplies of U.S. crude oil to meet refinery demand in Texas,”

Stillwater, Oklahoma — TransCanada will go ahead with a portion of the Keystone XL pipeline that will connect oil storage facilities in Cushing with refineries along the Gulf Coast in Texas.

In January, President Barack Obama denied a presidential permit for the pipeline project, citing a lack of time to evaluate environmental concerns over the pipeline crossing the Ogallala Aquifer in the Nebraska Sandhills.

However, the presidential permit is only required for an approximately 50-mile section of the Keystone XL pipeline that crosses the U.S.-Canadian border. The company does not need a permit to build a portion of line connecting Cushing to oil refineries in Houston and Port Arthur, Texas. TransCanada announced Monday it will treat the segment from Oklahoma into Texas as a stand-alone project and proceed.

The line is expected to relieve a recent glut of oil being stored in Cushing’s tank farms, where there has not been sufficient pipeline capacity to send crude oil to refineries. 

The International Energy Agency said in a report earlier this year that Cushing could gain an additional 7 million to 8 million barrels of crude stored in tank farms this year because of a lack of pipeline capacity to deliver oil farther south.

In a release Monday, TransCanada said the portion of the line connecting Cushing to the Gulf Coast is a $2.3 billion project, and it expects the line will be in service late next year, subject to local regulatory approval.

“The Gulf Coast Project will transport growing supplies of U.S. crude oil to meet refinery demand in Texas,” said TransCanada President and CEO Russ Girling. “Gulf Coast refineries can then access lower cost domestic production and avoid paying a premium to foreign oil producers. This would reduce the United States’ dependence on foreign crude and allow Americans to use more of the crude oil produced in their own country.”

Text Only
State News
Business Marquee

e-Edition
  • How You Want It When You Want It Today's Pauls Valley Democrat

    Now you can view and download the Democrat right to your desktop on the day the paper is published. Click here to get more information on the Democrat's e-Edition.

     

    CLICK HERE TO ACCESS THE E-EDITION SITE

     

    ATTENTION CURRENT DEMOCRAT SUBSCRIBERS TO START an e-EDITION

    e-mail request to sjohnson@pvdemocrat.com

    April 20, 2011 1 Photo 1 Link

AP Video
Stocks
Facebook