TransCanada says it will move the route of its planned oil pipeline out of the environmentally sensitive Sandhills area of Nebraska.

Speaking at a news conference at the Nebraska Capitol, the officials said TransCanada would agree to the new route, a move the company previously said wasn't possible, as part of an effort to push through the proposed $7 billion project. They expressed confidence the project would ultimately be approved.

A top TransCanada official says rerouting the line would likely require 30 to 40 additional miles.

The announcement follows the federal government's decision last week to delay a decision on a federal permit for the project until it studies new potential routes that avoid the Sandhills area and the Ogallala aquifer.

The proposed pipeline would carry crude oil from Canada to Texas Gulf Coast refineries.