Calgary, April 14, 2004 – KeySpan Energy Canada announced today that construction of an 84 km
natural gas pipeline is well underway to capture natural gas produced in the Pembina area of Alberta
for delivery to KeySpan’s Brazeau River gas plant. The area serviced by this pipeline is experiencing
significant exploration and development activity, and current production in the area is severely restricted
due to the lack of sour gas processing capacity. The pipeline is expected to be operational in August
2004.
The pipeline, known as the Brazeau Northeast Gas Gathering System, will extend from the EnerPro
operated Bigoray gas plant located at 15-7-51-9W5M to the inlet of the KeySpan operated Brazeau
River gas plant located at 6-12-46-14W5M. The pipeline routing has been chosen to follow the
development of the highly prospective Pembina Nisku edge bank play. The pipeline will be a
combination of 6 and 8 inch diameter, will have a maximum capacity of 28 mmcf/d and has been
designed to transport sour gas containing up to 25% hydrogen sulphide. Gross capital expenditures
will be approximately $18.4 million. The KeySpan Brazeau River gas plant currently has sufficient
capacity to process the full capacity of the pipeline.
KeySpan has a 30.7% working interest in the pipeline and will increase its ownership to 44.3% should
another Brazeau River plant owner choose to not participate in the project. Several producers who are
active in the capture area of the pipeline hold the remaining ownership interest. KeySpan will be the
operator of the pipeline.
"This project provides producers with access to gathering infrastructure and processing capacity in a
very active area, and is an example of how a midstream company can work with producers to create a
win-win solution,” said Jim Bertram, KeySpan's President and CEO. “Producers are able to focus on
finding and producing natural gas, knowing that it will be connected and processed quickly. For
KeySpan, this is another example of the many attractive internal growth projects available to us.”
About KeySpan Energy Canada
KeySpan Canada operates one of the largest natural gas midstream businesses in Canada. Its
business consists of natural gas gathering and processing as well as the processing, transportation,
storage and marketing of natural gas liquids (NGLs). KeySpan Canada’s 13 gas processing plants and
associated facilities are strategically located in the west central and foothills natural gas production
areas of the Western Canadian Sedimentary Basin in Alberta. They are pipeline-connected and offer a
wide range of flexible services. KeySpan Canada's NGL infrastructure consists of pipelines, processing
and storage in Edmonton and Fort Saskatchewan, Alberta, a major North American NGL hub.
KeySpan Energy Canada is jointly owned by KeySpan Facilities Income Fund (TSX:KEY.UN), holding a
75% interest, and KeySpan Corporation (NYSE:KSE), holding the remaining 25%. Additional
information on KeySpan Energy Canada and KeySpan Facilities Income Fund can be found on our
website at www.keyspancanada.com.
For more information please call:
David G. Smith, Senior Vice President and Chief Financial Officer, E-mail:
David_Smith@keyspancanada.com Telephone (403) 205-7604 Toll Free:
(888) 699-4853 Facsimile: (403) 205-8303
John Cobb, Director, Investor Relations, E-mail: John_Cobb@keyspancanada.com
Telephone (403) 205-7673 Toll Free: (888) 699-4853 Facsimile: (403) 205-
8303
