Construction A Go For Southern Leg Of Keystone XL

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.

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