In Canada, the first phase of Keystone involved the conversion of approximately 864km (537 miles) of existing natural gas pipeline in Saskatchewan and Manitoba to crude oil pipeline service. It also included approximately 373km (232 miles) of new 30-inch diameter pipeline, 16 pump stations and the Keystone Hardisty Terminal.

The US portion of the Keystone Pipeline included 1,744km (1,084 miles) of new, 30-inch diameter pipeline in North Dakota, South Dakota, Nebraska, Kansas, Missouri and Illinois. It also involved construction of 23 pump stations and delivery facilities at Wood River and Patoka, Illinois.

TransCanada has commenced construction of the second phase of Keystone. It includes a 480km (298 mile) extension from Steele City, Nebraska to Cushing, Oklahoma and 11 new pump stations which will increase the capacity of the pipeline from 435,000 barrels per day to 591,000 barrels per day. The second phase of Keystone is expected to be in-service in the first quarter of 2011.

In July 2008, TransCanada planned to expand the Keystone crude oil pipeline system and provide additional capacity of 500,000 barrels per day from Western Canada directly to the US Gulf Coast. TransCanada expects to commence construction of the Gulf Coast expansion in the first quarter of 2011, pending the receipt of all regulatory approvals.

The Keystone Gulf Coast Expansion project is a 2,673km (1,661 mile), 36-inch crude oil pipeline that would begin at Hardisty, Alberta and extend southeast through Saskatchewan, Montana, South Dakota and Nebraska. It would incorporate the portion of the Keystone Pipeline that is currently under construction through Kansas to Cushing, Oklahoma.

The pipeline will then continue on through Oklahoma and Texas to a delivery point near existing terminals on the Gulf Coast, to serve the Port Arthur, Texas marketplace.

When completed, the expansion project will increase the commercial capacity of the Keystone Pipeline system to approximately 1.1 million barrels per day.