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By Sheldon Alberts

WASHINGTON — U.S. President Barack Obama on Monday applauded a decision by Calgary-based TransCanada Corp. to build the southernmost portion of the controversial Keystone XL pipeline as a stand-alone project that does not need U.S. State Department approval.

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“The president welcomes today’s news that TransCanada plans to build a pipeline to bring crude oil from Cushing, Oklahoma, to the Gulf of Mexico,” White House press secretary Jay Carney said in a statement.

The plan will “help address the bottleneck of oil” in the U.S. Midwest that has resulted from increased domestic production in areas like the Bakken oilfields of North Dakota.

“We look forward to working with TransCanada to ensure that it is built in a safe, responsible and timely manner, and we commit to take every step possible to expedite the necessary federal permits,” Mr. Carney said.

The White House’s stamp of approval marks a significant victory for TransCanada, coming just a month after Mr. Obama and the State Department denied a presidential permit for the company to build the full $7-billion Keystone XL pipeline from Hardisty, Alta., to the Gulf Coast of Mexico.