The Canadian firm hoping to build a massive oil pipeline from Canada to the U.S. gulf coast announced Monday that it will push ahead with plans to construct the segment running from Cushing, Okla., to Port Arthur, Texas, and will apply for a federal permit for the cross-border section of the pipeline.

The move by TransCanada would alleviate the glut of oil at Cushing, a major terminal, and address one of the main reasons for building the controversial Keystone XL pipeline. The $2.3 billion pipeline will transport 700,000 barrels per day starting in mid- to late-2013. Plans for the segment of pipeline crossing the U.S.-Canada border would come “in the near future” the company said.