Transcanada to build pipeline from Cushing to Gulf Coast

The Canadian company which saw plans for a $7 billion pipeline stopped by the federal government says it will proceed with a portion of the line which will run from Cushing, Oklahoma, to the Gulf Coast.

TransCanada Corp. says the approximate cost of the segment will be $2.3 billion.

The Calgary-based petroleum giant hopes to have the line operational by the middle of next year.

The pipeline will help relieve an oversupply of crude in the Midwest which can't make its way to refineries in Texas because of a shortage of transportation and pipeline facilities.

Bloomberg says the lack of pipeline capacity between Cushing and the Gulf Coast has caused U.S. oil to trade at a discount to imports.

The company has also begun the application process for a pipeline from the Canadian border to Steele City, Nebraska.