Construction A Go For Southern Leg Of Keystone XL

TransCanada Corporation announced it has received the last of three key permits needed from the U.S. Army Corps of Engineers to build the southern leg of the Keystone XL pipeline.

Known as the Gulf Coast project, the pipeline will span nearly 500 miles from Cushing, Oklahoma to Nederland, Texas near Port Arthur.  The project will employ roughly 4,000 Americans and cost $2.3 billion. The company says it will begin construction in a matter of weeks

“It’s additional transportation capacity to refining locations, which is really important.”

Michelle Foss is chief economist at the University of Texas’s Bureau of Economic Geology.

“For some time now, we’ve had a lot of crude oil production bottled up in the midcontinent. That has prevented good access to refining and prevented customers from gaining access to lower-priced petroleum products produced from our cheaper domestic crude.”

President Barack Obama encouraged TransCanada to pursue the Gulf Coast project after he rejected the broader Keystone XL plan, saying it needed to be rerouted around Nebraska’s environmentally sensitive Sandhills region. For that project, the company needs presidential approval because it crosses an international border.  The shorter portion only requires permits from state and federal agencies.

The company is working with Nebraska’s Department of Environmental Quality to map an alternate route.


Andrew Schneider

Andrew Schneider

Business Reporter

Andrew Schneider joined News 88.7 in January 2011. Since arriving in Houston, he has reported on the many changes wrought on the region’s economy by the revolution in domestic oil and gas production. His non-energy reporting runs the gamut from white-collar crime to cattle ranching. His work has aired on...

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