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August 31, 2015

Skirting Keystone XL Pipeline

An oil tanker passes up the Mississippi River in Plaquemines Parish June 2008. (Photo by Mario Tama/Getty Images)

An oil tanker passes up the Mississippi River in Plaquemines Parish June 2008.
(Photo by Mario Tama/Getty Images)

As the Keystone XL pipeline lingers in legal limbo, companies are finding new ways beyond rail to move tar sands oil from Alberta, Canada to refiners in the Gulf Coast and elsewhere.

Once a major pipeline is reversed to bring oil to Montreal by the end of this year, refiner Valero expects to ship additional light crude from Montreal to its refinery in Levis, Quebec,  according to a company spokesman.

Keystone was also expected to provide transportation for Bakken shale crude from North Dakota. Last month, Iowa farm owners got notice of plans for a different pipeline to cut through their land to bring Bakken oil to refineries in Illinois, cutting through more than a dozen Iowa counties along the way, the Associated Press reported.

Note: This post was updated to reflect the type of oil Valero will ship, which the company said had been incorrectly reported in this Platts story.

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