Recently, TransCanada Corporation (TSX:TRP), the oil and gas / energy infrastructure giant, announced the startup of commercial operation of what is called the Gulf Coast Project. The US$2.3 billion pipeline connects the major oil hub in Cushing, Oklahoma to delivery points on the U.S. Gulf Coast such as Nederland, Texas.
That's it for that line. The testing has all been done, all the permits have been received, and TransCanada is now shipping oil on behalf of its customers to refineries in Texas.
This part of the Keystone XL pipeline did not require White House approval, as it does not cross national borders.
As we reported recently, TransCanada already has a seamless connection all the way from Alberta to Texas, in part through the Keystone line from Alberta to Cushing.
But since TransCanada wants to expand the capacity of this Northern portion (to be called Keystone XL), and because the new line crosses the U.S. border, that portion does require White House approval, something that has taken more than five years with no end in sight.
In fact, U.S. Secretary of State John Kerry recently told Canada's Foreign Affairs Minister John Baird, quite bluntly, that a decision won't be coming any time soon.
We salute TransCanada in moving forward in the face of such silly, silly politicking.
Money Reporter, MPL Communications Inc.133 Richmond St.W., Toronto, ON, M5H 3M8. 1-800-804-8846