Exhibit 99.1
       KEYSPAN
Climate is Everything

                                                                        NEWS
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KeySpan Corporation                                        For Immediate Release

Contacts:      Investors                                    Media Relations
               George Laskaris                              Ed Yutkowitz
               718.403.2526                                 718.403.2523


                       KeySpan Corporation Completes Sale
              of its Remaining Ownership Interest in KeySpan Canada
              -----------------------------------------------------

Brooklyn,  New York, December 2, 2004 - KeySpan Corporation (NYSE:KSE) announced
today the successful  completion of the sale of its remaining ownership interest
of  approximately  17.4%  in  its  affiliate  company,   KeySpan  Energy  Canada
Partnership   ("KeySpan   Canada"),   to  the  KeySpan  Facilities  Income  Fund
(TSX:KEY.UN; KEY.DB) (the "Fund").

The Fund entered into an agreement to sell 10.872 million units of the Fund at a
price of CND$13.90 per unit for gross total  proceeds of  approximately  CDN$151
million.  The proceeds of the offering were used by the Fund to acquire  KeySpan
Corporation's remaining interest in KeySpan Canada.

KeySpan  Corporation will receive net proceeds of approximately  CDN$143 million
(or approximately US$119 million), after commissions and expenses,  resulting in
an estimated profit for book purposes of approximately US$19 million, after tax.

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A member of Standard & Poor's 500 Index,  KeySpan Corporation  (NYSE:KSE) is the
largest  distributor of natural gas in the Northeast with 2.5 million customers,
operating  regulated  natural gas utilities in New York,  Massachusetts  and New
Hampshire which do business as KeySpan Energy  Delivery.  This customer  focused
business  is  complemented  by the  Energy  Services  business  which  offers  a
portfolio  of  energy-related  products,  services  and  solutions  to homes and
businesses. KeySpan is also the largest owner of electric generation in New York
State.  We own  approximately  6,400  megawatts of  generating  capacity,  which
provides power to the 1.1 million  customers of the Long Island Power  Authority
and supplies 25% of New York City's capacity needs. In addition to these assets,
KeySpan  has  strategic  investments  in  production,  pipeline  transportation,
distribution and storage,  and owns minority interest in natural gas exploration
and Canadian gas processing.  KeySpan has  headquarters in Brooklyn,  Boston and
Long Island.

Certain statements contained herein are forward-looking statements, which
reflect numerous assumptions and estimates and involve a number of risks and
uncertainties. For these statements, we claim the protection of the safe harbor
for forward-looking statements provided by the Private Securities Litigation
Reform Act of 1995. There are possible developments that could cause our actual
results to differ materially from those forecasted or implied in the
forward-looking statements. You are cautioned not to place undue reliance on
these forward-looking statements, which are current only as of the date of this
filing. We disclaim any intention or obligation to update or revise any
forward-looking statements, whether as a result of new information, future
events or otherwise. Among the factors that could cause actual results to differ
materially are: general economic conditions, especially in the Northeast United
States; available sources and costs of fuel; volatility of energy prices in a
deregulated market environment as well as in the source of natural gas and fuel
used to generate electricity; potential write-down of our investment in natural
gas properties when natural gas prices are depressed or if we have significant
downward revisions in our estimated proved gas reserves; federal and state
regulatory initiatives that increase competition, threaten cost and investment
recovery and impact rate structure; our ability to successfully reduce our cost
structures; implementation of new accounting standards; the degree to which we
develop unregulated business ventures, as well as federal and state regulatory
policies affecting our ability to retain and operate those business ventures;
our ability to identify and make complementary acquisitions, as well as the
successful integration of those acquisitions; inflationary trends and interest
rates; and risks detailed from time to time in reports and other documents filed
by us with the Securities and Exchange Commission.