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TransCanada wins approval for southern leg of Keystone XL

TransCanada Corp. expects to begin construction soon on a 485-mile crude oil pipeline connecting the Cushing, Oklahoma, storage hub with refiners on the Gulf Coast.
BY JAY F. MARKS Published: July 28, 2012

WTI has been trading at a significant discount to Brent crude for the past few years because of insufficient pipeline capacity out of Cushing.

Thompson said he hopes the Keystone XL segment rebalances the playing field for producers in the Mid-Continent region.

“I wish it could be open in six months,” he said.

The Keystone XL project has been in the works since 2009, as TransCanada looks to build a pipeline linking Canada's oil sands with Gulf Coast refineries.

The Obama administration denied TransCanada a presidential permit in January amid concerns about potential environmental risks.

TransCanada in March announced plans to proceed with the southern part of the pipeline, while working to refine its route through Nebraska's Sand Hills region to win approval for the remainder of the project.

Environmental groups still are opposed to the pipeline project.