TransCanada withdraws proposal for program for Marketlink oil pipeline

TransCanada Corp onFriday withdrew its proposal to U.S. regulators to establish anew "flexible short-term program" for its Marketlink oilpipeline from Cushing, Oklahoma, to Gulf Coast markets:

* The withdrawal was made "without prejudice to refiling"and the company did not "concede or agree with any protestsraised," the filing said.

* Earlier this week, Shell Trading (US) Company (STUSCO), ashipper on Marketlink, said the proposed "flexible short-termprogram" was inconsistent with the FERC-approved rate structure.

* TransCanada in April filed for the program, saying itwould allow shippers to sign up for short term commitments atlower rates, effective June 1.

(Reporting by Devika Krishna Kumar in New York; Editing byRichard Chang)