TransCanada to build southern leg of Keystone pipeline: reports

Reuters News
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Posted: Feb 27, 2012 11:03 AM
TransCanada to build southern leg of Keystone pipeline: reports

WASHINGTON/CALGARY, Alberta (Reuters) - TransCanada Corp is expected to announce on Monday that it will start to build the southern leg of its controversial Keystone XL oil pipeline between Canada and the United States, three political news organizations reported.

TransCanada will begin building the portion of the line that runs from Cushing, Oklahoma south to Texas refineries, reported The Hill, National Journal and Politico.

A company spokesman could not be reached immediately for comment.

After President Barack Obama rejected Keystone XL in January, saying it needed further environmental reviews, TransCanada Chief Executive Russ Girling raised the possibility of building the controversial project in segments, starting with the southern portion.

The Gulf Coast portion, which would help alleviate a glut of oil supply at the Cushing Oklahoma storage hub that has pressured prices, has been valued at $2 billion.

(Reporting by Roberta Rampton in Washington and Jeffrey Jones in Calgary; Editing by Marguerita Choy)