The approval, however, comes with certain conditions.
Grand Rapids Pipeline is a joint venture company formed between TransCanada and Brion, with each holding 50% stake in the project, which will begin initial crude oil transportation by mid-2016.
The project includes construction of two 460km-long transmission main lines, two 4km-long lateral pipelines, three pump stations, and two tank terminals with a combined storage of approximately 1 million barrels.
Upon completion, the pipeline project can transport 900 000 barrels per day (bbl/d) of diluted bitumen from the Fort MacKay terminal to the Edmonton area and 330 000 bbl/d of hydrocarbon diluent from the Edmonton area to the Fort MacKay terminal.
A total of 26 conditions were laid out by the panel to the Grand Rapids on the two sections of the pipeline that traverse lands within Strathcona County’s Heavy Industrial Policy Area and immediately adjacent to the Fort Saskatchewan city.
TransCanada president and chief executive officer Russ Girling, said: "The pipeline will be a critical piece of infrastructure to support the long-term growth plans and increased oil production in the Alberta oil sands and other oil-producing areas in northern Alberta.
"With permits already received for Northern Courier and now Grand Rapids, we have made significant progress this year in advancing our capital program of Alberta regional liquids pipeline projects."
Brion signed a long-term transportation service contract in support of the Grand Rapids project.
The project construction is scheduled to commence in fall 2014.
