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TransCanada’s Cushing liquids storage facility in Oklahoma.

The Gulf Coast extension of the Keystone Pipeline System provides a direct route for our shippers from Hardisty, Alta., to U.S. Gulf Coast refineries at Port Arthur, Texas.

Liquids Pipelines

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We are developing an enviable position in the liquid hydrocarbon transportation business as we move forward with our strategy of connecting key producing areas in Canada and the United States to domestic and international refinery markets. Our Keystone Pipeline System is proving to be a valuable platform for growth, while our experience in repurposing underutilized natural gas pipeline facilities is helping to meet the growing need for crude oil transportation across the continent.

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The keystone pipeline system transports one-fifth of Canada’s crude oil exports to the United States.

Our history of operating natural gas and liquids pipelines in Alberta has been instrumental in capturing $3.6 billion in new investments to move growing crude oil production in the province.

EBITDA Surpasses $1 Billion

EBITDA Surpasses $1 Billion

Keystone has safely transported more than 830 million barrels of crude oil from Canada to U.S. markets since it began operation in July 2010. With the completion of the Gulf Coast extension in January 2014, the system now provides a direct route for our shippers from Hardisty, Alberta to Gulf Coast refineries at Port Arthur, Texas. This resulted in the EBITDA contribution from Keystone surpassing $1 billion in 2014. Our Keystone Pipeline System will extend its market reach even further in 2015 with the completion of the Houston Lateral and Terminal project.

Our history of operating natural gas and liquids pipelines in Alberta has been instrumental in capturing $3.6 billion in new investments to move growing crude oil production within the province. These projects will serve as an excellent base for our shippers to access various crude oil markets via Keystone and our proposed Keystone XL and Energy East projects. Construction commenced in the second half of 2014 on both the $1.5-billion Grand Rapids Pipeline and on the $900-million Northern Courier Pipeline following approval of both projects by the Alberta Energy Regulator.

Liquids pipelines are the largest pillar of TransCanada’s growth plan, with $25 billion in new projects underpinned by long-term contracts in development for completion by the end of the decade.

Committed to Keystone XL

Committed to Keystone XL

TransCanada and our shippers remain committed to Keystone XL despite the unprecedented delays we have faced on this much-needed project. We are pleased that the Final Supplemental Environmental Impact Statement issued by the Department of State at the end of January 2014 reinforced previous conclusions that Keystone XL will be built and operated with minimal impact on the environment. The report also reiterated the benefits of the project, noting that Keystone XL will enhance American energy security, create more than 40,000 jobs and generate billions of dollars in economic activity for the U.S. The Nebraska Supreme Court’s decision in early 2015 validated the pipeline’s route in the state, allowing the Department of State to complete its National Interest Determination process. We expect Keystone XL to begin service approximately two years after receiving a Presidential Permit that will allow the pipeline to cross the Canada-U.S. border.

Energy East Moves Forward

Energy East Moves Forward

Our $12-billion Energy East Pipeline project has secured long-term take-or-pay contracts to ship approximately one million barrels per day of crude oil from western Canada to refineries and proposed marine terminals in eastern Canada. This innovative project that will repurpose more than 3,000 km of underutilized capacity on the Canadian Mainline continues to gain public support as Canadians recognize the benefits of enhancing market access for our valuable energy resources and eliminating eastern Canada’s reliance on imported crude oil.

We filed an extensive application for the Energy East Pipeline project with the NEB at the end of October. Subject to regulatory approvals, we anticipate crude oil deliveries to begin by the end of 2018.

Altogether, our list of commercially secured projects will transform the company. In addition to smaller-scale projects, bringing Keystone XL and Energy East to fruition will provide us with approximately 2.5 million barrels per day of long-haul capacity underpinned by approximately two million barrels per day of long-term contracts, establishing us as leaders in the transportation of liquid hydrocarbons.