"We are thrilled with the draw. To be playing Newcastle Falcons, Connacht and local rivals Newport is fantastic from a rugby point of view and will no doubt attract some great crowds," said Keys coach Greg Woods.
"The fact we play each side home and away will make the competition even better. We'll be able to sample playing at Kingston Park and in Ireland, but then they'll have to come to Pandy Park - it's the best of both worlds.
"Having done so well last season teams won't be taken by surprise by us any more, but our boys thrived on this competition last year and will be raring to go come October. We will have to win all our home games and pick up something on the road, so to start away at Newcastle, then have a home match against Newport, suits us perfectly.
"Newport is our biggest game every year and to play them twice more is great in our eyes, it adds further spice to the season. We're happy with where we are as we approach the start of the season.
"We have retained most of our squad and recruited a few quality players in Dorian Jones, from Ebbw Vale, and No 8 Adam Powell, from Neath. Now it's just a case of putting in the hard work before the start of the season."
In addition to 12 teams being added to the competition, taking it up to eight Pools of four teams, another format switch sees clubs now face each other home and away in the Pool stages. The eight Pool winners then move forward to the quarter-finals.
Joining the competition for their debut season are Bridgend Ravens, Bedwas, Stirling County, Carmarthen Quins, Dundee HSFP, Newcastle Falcons, Jersey, Gala and Bedwas. The competition will now take place over nine rounds and will align with ERC weekends.
Aberavon head coach Simon King reckons the draw will put an extra spring in the step of his players in training this week after they were paired with reigning champions Munster A in Pool 7. Also in their Pool are the English Championship duo, Plymouth Albion and Rotherham Titans.
"We have always been competitive in the seasons in which we have played in the B&I Cup and it is a tournament we enjoying being a part of," said King.
"We had London Welsh in our Pool last time and we all know where they have reached since then. It is a tournament that is growing in stature and it will be a great test for my players to meet Munster.
"They are one of the giants of the modern professional era and it couldn't be better for us. It is a 'win-win' situation both on and off the field for us and is bound to give our new skipper Sam Williams and his players a real target to aim at.
"We're very proud as a club that we played a part in helping Ryan Bevington, Justin Tipuric, Ashley Beck and Rhys Webb progress into the Ospreys and Wales teams and this season's fixture list in both the Principality Premiership and the B&I Cup will help us test the credentials of other youngsters who want to follow suit."
Llanelli's head of rugby Anthony Buchanan knows all about London Scottish and Moseley from previous seasons in the B& I Cup, but admits Scottish national Cup holders Gala will be a bit of a mystery in Pool 6.
"I'm delighted with the draw, but too long in the tooth to take any of the teams for granted. We've played London Scottish and Moseley before in the competition and experienced at first hand just how tough the Scottish clubs are when we faced Melrose last season," said Buchanan.
"It is great that this tournament has expanded to include all 12 Welsh Premiership clubs, and to home and away fixtures. I think we will now find ourselves facing full strength teams every weekend and it will become an even tougher test for us.
"It is a competition that is moving to a different level and will provide our players with a real yardstick. I've always said there is real value in cross-border competitions and I'm really looking forward to the new challenge that will be presenting itself this season."
2012-13 British & Irish Cup
Pool 1 - Bristol Rugby, Bridgend Ravens, Cardiff, Ulster
Pool 2 - Bedford Blues, Bedwas, Neath, Stirling County
Pool 3 - Carmarthen Quins, Dundee HSFP, Cornish Pirates, Swansea
Pool 4 - Connacht, Cross Keys, Newcastle Falcons, Newport
Pool 5 - Jersey, Leeds Carnegie, Leinster, Pontypridd
Pool 6 - Gala, Llanelli, London Scottish, Moseley
Pool 7 - Aberavon, Munster, Plymouth Albion, Rotherham Titans
Pool 8 - Doncaster Knights, Llandovery, Melrose, Nottingham Rugby
The Pool games will be played on: Rd 1 - 12-14 October; Rd 2 - 19-21 October; Rd 3 - 7-9 December; Rd 4 - 14-16 December; Rd 5 - 11-13 January; Rd 6 - 19 January.
The quarter-finals will be played the weekend of 5-7 April; the semi-finals 26-28 April; and the final Friday 17 May (TBC).
Rd 1: Cardiff v Bristol Rugby; Ulster v Bridgend Ravens
Rd 2: Bridgend Ravens v Cardiff; Bristol Rugby v Ulster
Rd 3: Bridgend Ravens v Bristol Rugby; Ulster v Cardiff
Rd 4: Bristol Rugby v Bridgend Ravens; Cardiff v Ulster
Rd 5: Cardiff v Bridgend Ravens; Ulster v Bristol Rugby
Rd 6: Bridgend Ravens v Ulster; Bristol Rugby v Cardiff
Rd 1: Bedwas v Bedford Blues; Stirling County v Neath
Rd 2: Bedford Blues v Stirling County; Neath v Bedwas
Rd 3: Neath v Bedford Blues; Stirling County v Bedwas
Rd 4 Bedford Blues v Neath; Bedwas v Stirling County
Rd 5: Bedwas v Neath; Stirling County v Bedford Blues
Rd 6: Bedford Blues v Bedwas; Neath v Stirling County
Rd 1: Cornish Pirates v Carmarthen Quins; Swansea v Dundee HSFP
Rd 2: Carmarthen Quins v Swansea; Dundee HSFP v Cornish Pirates
Rd 3: Carmarthen Quins v Dundee HSFP; Cornish Pirates v Swansea
Rd 4: Dundee HSFP v Carmarthen Quins; Swansea v Cornish Pirates
Rd 5: Cornish Pirates v Dundee HSFP; Swansea v Carmarthen Quins
Rd 6: Carmarthen Quins v Cornish Pirates; Dundee HSFP v Swansea
Rd 1: Newcastle Falcons v Cross Keys; Newport v Connacht
Rd 2: Connacht v Newcastle Falcons; Cross Keys v Newport
Rd 3: Cross Keys v Connacht; Newcastle Falcons v Newport
Rd 4: Connacht v Cross Keys; Newport v Newcastle Falcons
Rd 5: Newcastle Falcons v Connacht; Newport v Cross Keys
Rd 6: Connacht v Newport; Cross Keys v Newcastle Falcons
Rd 1: Jersey v Pontypridd; Leinster v Leeds Carnegie
Rd 2: Leeds Carnegie v Jersey; Pontypridd v Leinster
Rd 3: Leeds Carnegie v Pontypridd; Leinster v Jersey
Rd 4: Jersey v Leinster; Pontypridd v Leeds Carnegie
Rd 5: Jersey v Leeds Carnegie; Leinster v Pontypridd
Rd 6: Leeds Carnegie v Leinster; Pontypridd v Jersey
Rd 1: Gala v London Scottish; Moseley v Llanelli
Rd 2: Llanelli v Gala; London Scottish v Moseley
Rd 3: Gala v Moseley; London Scottish v Llanelli
Rd 4: Llanelli v London Scottish; Moseley v Gala
Rd 5: Gala v Llanelli; Moseley v London Scottish
Rd 6: Llanelli v Moseley; London Scottish v Gala
Rd 1: Aberavon v Rotherham Titans; Plymouth Albion v Munster
Rd 2: Munster v Aberavon; Rotherham Titans v Plymouth Albion
Rd 3: Aberavon v Plymouth Albion; Rotherham Titans v Munster
Rd 4: Munster v Rotherham Titans; Plymouth Albion v Aberavon
Rd 5: Aberavon v Munster; Plymouth Albion v Rotherham Titans
Rd 6: Munster v Plymouth Albion; Rotherham Titans v Aberavon
Rd 1: Doncaster Knights v Melrose; Llandovery v Nottingham Rugby
Rd 2: Melrose v Llandovery; Nottingham Rugby v Doncaster Knights
Rd 3: Llandovery v Doncaster Knights; Nottingham Rugby v Melrose
Rd 4: Doncaster Knights v Llandovery; Melrose v Nottingham
Rd 5: Doncaster Knights v Nottingham; Llandovery v Melrose
Rd 6: Melrose v Doncaster Knights; Nottingham v Llandovery
This will be the fourth year of the competition with Cornish Pirates, Bristol Rugby and Munster previous winners.