Washington, 16 March 2011

The Obama administration ordered an additional environmental review of a proposed $7 billion pipeline set to deliver Canadian crude to the Gulf Coast, confirming another project delay amid tough opposition.

The State Department said it now expected to make a final decision on the necessary permit to build the 2,000 mile pipeline between Oklahoma and the Gulf coast by the end of the year. TransCanada had previously said it expected a decision in the second half of the year.

Supporters tout the line, being built by TransCanada Corp, as a way to help reduce U.S. reliance on Middle Eastern oil by delivering more fast-growing Canadian oil sands production to coastal refiners. Due to a lack of a southern pipeline, much of the crude is piling up at Cushing, Oklahoma.

Ends --