TransCanada to open southern leg of Keystone XL pipeline

The Keystone Oil Pipeline is pictured under construction in North Dakota in this undated photograph...

The Keystone Oil Pipeline is pictured under construction in North Dakota in this undated photograph released on January 18, 2012. REUTERS/TransCanada Corporation/Handout

Matt Dykstra, QMI Agency

, Last Updated: 3:59 PM ET

EDMONTON — TransCanada has officially started shipping crude oil through the southern part of its Keystone pipeline, the Calgary-based company announced Wednesday.

While the controversial northern part of the project is still being considered by the U.S. State Department and President Barack Obama, TransCanada is ready to move forward on the $2.3-billion Cushing MarketLink leg of the Gulf Coast pipeline project.

The 783 km pipeline connects the major oil centre in Cushing, Oklahoma, to refineries in Nederland, Texas. The pipeline is expected to alleviate the giant glut in oil storage capacity in Cushing by 2.25 million barrels.

“This project is a critical, modern piece of American energy infrastructure that allows producers to safely connect growing production with the world’s most efficient refiners on the U.S. Gulf Coast,” said Russ Girling, TransCanada’s president and CEO.


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