TransCanada begins crude oil delivery through $2.3bn pipeline

TransCanada has begun delivering crude oil through a new $2.3bn pipeline that runs from Oklahoma to the Gulf Coast.

TransCanada president and chief executive officer Russ Girling said that Gulf Coast refiners have been waiting for a pipeline to supply oil directly from Cushing, Oklahoma.

"This project is a critical, modern piece of American energy infrastructure that allows producers to safely connect growing production with the world’s most efficient refiners on the US Gulf Coast," Girling added.

The project also provides an opportunity to US refineries to use more of the crude oil produced in both Canada and the US for decades to come.

Construction of the 487-mile 36in pipeline involved more than 50 contracts with manufacturers and companies building the pipeline and equipment from across the US and also includes the addition of 2.25 million barrels of new oil storage capacity at Cushing.

Designed to help relieve the glut of crude oil in places such as Cushing, the Gulf Coast project will transport supplies to meet refinery demand and provide refineries with access to lower-cost domestic production.

The project is initially expected to transport up to 700,000 barrels of oil a day (b/d) and has the potential to transport up to 830,000 b/d to Gulf Coast refineries.

TransCanada has adopted standards for the project such as more remotely controlled shutoff valves, increased pipeline inspections, higher standards for construction, maintenance and integrity, and burying the pipe deeper in the ground.