Oil Flowing From Cushing To Houston In Keystone XL Pipeline

A Canadian company has started operating the southern portion of a cross-border pipeline that has stirred controversy and tension between the United States and Canada.

TransCanada says in a statement on its web site Wednesday that it is delivering oil through the Gulf Coast portion of its 36-inch Keystone XL pipeline.

"This is a very important milestone for TransCanada, our shippers and Gulf Coast refiners who have been waiting for a pipeline to supply oil directly from Cushing," said Russ Girling, President and CEO TransCanada.

"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 U.S. Gulf Coast. It also provides those American refineries the opportunity to use more of the crude oil produced in both Canada and the United States for decades to come."

The 487-mile pipeline is the southern leg of the Keystone XL pipeline, which ships oil from Cushing, Oklahoma to Houston-area refineries.

3/22/2012 Related Story: In Cushing, Obama Says He Wants Fed To Cut Red Tape, Expedite Pipeline

The Associated Press contributed to this report.