Joint Venture to Build Pipeline From Cushing, Oklahoma, to the Gulf Coast -- Will Rival TransCanada's Keystone XL

The administration continues to delay the decision on granting permits for TransCanada's Keystone XL pipeline that would bring oil from Canada to the Gulf Coast refineries, taking pressure off the storage facilities at Cushing, Oklahoma, and bringing more crude to American refineries.

I have always maintained that TransCanada should work the problem in parallel. While waiting for the decision from the US government, it should go ahead and lay that portion of the pipeline from Cushing to Texas/Louisiana.

It appears someone is doing just that.

Two companies are joining forces to build an oil pipeline from Oklahoma to the Gulf Coast, creating a rival to TransCanada Corp.'s controversial plan to boost Canadian oil flows through the U.S.

Enterprise Products Partners LP and Energy Transfer Partners LP said Tuesday they are forming a joint venture to build a 400,000-barrel-a-day oil pipeline from Cushing—a major U.S. trading and storage hub for crude oil—to Houston, near the heart of the U.S. refining industry. 

It will be interesting to see how much support this joint venture will get from the states and the federal government, and how serious folks are about solving the energy problem the US faces. I'm not holding my breath.

Reuters is also carrying the story.