The Army Corps of Engineers has approved part of the Keystone XL pipeline along the Texas Gulf Coast.
The Corps said in a letter Monday that TransCanada has approval for a 115-mile portion of pipeline near Galveston.
The company still needs approval for two other sections of the 485-mile line designed to transport oil from Cushing, Oklahoma to Texas refineries.
TransCanada is pursuing this portion of the pipeline as it awaits federal approval for Keystone XL, a plan it resubmitted in May.
President Barack Obama denied TransCanada's permit in January to start construction on the 1,700-mile pipeline, citing insufficient time to meet a Congress-mandated deadline.