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TransCanada Touts Oil Pipeline From Okla. To Texas

February 27, 2012, 11:13 AM

TransCanada Touts Oil Pipeline From Okla. To Texas
WASHINGTON - A Canadian company says it will build an oil pipeline from Oklahoma to Texas after President Barack Obama blocked the larger Keystone XL pipeline from Canada.

Calgary-based TransCanada says the new project does not require presidential approval, since it does not cross a U.S. border. The shorter pipeline is expected to cost about $2.3 billion and be completed next year.

The Obama administration had suggested development of an Oklahoma-to-Texas line to alleviate an oil glut at a Cushing, Oklahoma, storage hub.

TransCanada says it still hopes to build the full 1,700-mile Keystone XL pipeline, which would carry oil derived from tar sands in Alberta, Canada to refineries along the Texas Gulf Coast.  The company is working with Nebraska officials to find a route that avoids the environmentally sensitive Sandhills region.

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