NEB approves Keystone Cushing Expansion Project

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17 July 2008

The National Energy Board (NEB) today approved the TransCanada Keystone Pipeline GP Ltd. (Keystone) Cushing application to expand the Canadian portion of the Keystone pipeline, approved by the NEB on 20 September 2007.

The expanded facilities will allow Keystone to increase its transportation capacity by 24,800 m3/d (cubic metres per day), equivalent to 156,000 barrels per day (bpd). The overall transportation capacity will increase from the previously projected 69,200 m3/d (435,000 bpd), to 94,000 m3/d (591,000 bpd).

The Canadian portion of the Keystone pipeline will extend from Hardisty, Alberta to a point near Haskett, Manitoba. The expansion, consisting of seven new pump stations, increased motor sizes at seven pump stations, and the addition of pumping units at 13 previously approved pump stations, has an estimated value of $348 million.

In making its decision, the NEB heard from intervenors on several issues. The Métis Nation - Saskatchewan stated that Keystone failed to identify it as an interested stakeholder and to provide information at the start of project consultation. The Alberta Association of Pipeline Landowners and the Hadwin Cattle Co. Ltd. expressed concerns related to land use, including noise impacts. The Alberta Federation of Labour stated that the project could have negative consequences for domestic industries and employment.

The NEB was generally satisfied with Keystone's consultation efforts with stakeholders. In order to monitor ongoing consultation efforts, the NEB directed Keystone to provide further updates on its consultation with all potentially affected persons and groups, including the Métis Nation - Saskatchewan.

The NEB also directed Keystone to provide information from the detailed comprehensive noise assessment to the Alberta Association of Pipeline Landowners and the Hadwin Cattle Co. Ltd.

On balance, the NEB determined that the Cushing Expansion will likely provide a positive economic benefit for Canadians. The NEB also determined that Keystone's proposal is consistent with tolling and tariff requirements of Part IV of the NEB Act.

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