Title Of Presentation

1. Title Of Presentation CONNECTING THE NORTH Arctic Gas Symposium November 2001 Houston, TX

2. TransCanada • Third largest gas transmission system in the world - over 38,000 km • Move about 75% of Western Canada’s natural gas production to market • Over $20 billion in assets • Manage or control over 1900 MW of power

3. TransCanada’s Pipeline and Power Assets YUKON NORTHWEST TERRITORIES NUNAVUT Yellowknife Fort Nelson ALBERTA MacKay River Bear Creek BRITISH COLUMBIA Sundance A MANITOBA QUEBEC Redwater ONTARIO Williams Lake Edmonton SASKATCHEWAN Calstock Tunis Longlac Trans Quebec &Maritimes Calgary Vancouver Empress Regina TransCanada Carseland Montreal Winnipeg Kapuskasing Nipigon Cancarb Foothills North Bay Portland Curtis Palmer Northern Border Great Lakes Castleton Iroquois Ocean State Niagara Tuscarora Chicago Power Plants (Includes Plants Under Development

4. Direct Access to Five Growth Markets in North America Potential Alaska Supply PotentialMackenzie Supply Alberta / B.C. Eastern Canada /Northeast U.S.A. PacificNorthwest /California Midwestern U.S.A.

5. North American Gas Demand Growth 1.9 Bcf/d 3.2%/yr 1.5 Bcf/d 3.1%/yr 3.3 Bcf/d 3.1%/yr 2.4 Bcf/d 2.3%/yr 2.8 Bcf/d 2.1%/yr • Total North American Demand: 66 Bcf/d in 1998 • 87 Bcf/d in 2010

6. 9000 8500 16 Development 8000 Exploration 14 7000 6350 6000 5330 12 5000 # of Gas Wells Deliverability 10 4000 3000 8 2000 1006 6 1000 4 0 1990 1995 2000 Western Canadian Supply Response

7. NEB Case 1 Bcf / d 25 NEB Case 2 20 15 10 5 0 2000 2005 2010 2020 2015 2025 Western Canadian Supply Forecast • Alaskan and Canadian frontier reserves • are needed to meet demand growth

8. Northern Gas Resources Mackenzie Delta Reserves: 9 Tcf Proven 64 Tcf Ultimate Production: None Alaska Alaska North Slope (Prudhoe Bay) Reserves: 31 Tcf Proven 99 Tcf Ultimate Production: 8 Bcf/d (associated) 7 Bcf/d (re-injected) Nunavut Yukon Northwest Territories Alberta B.C.

9. Ivvavik National Park Prudhoe Bay Mackenzie Delta Arctic National Wildlife Reserve Inuvik Alaska Nunavut Yukon Flats Wildlife Reserve Northwest Territories Yukon Manitoba Alberta British Columbia Saskatchewan NORTH DAKOTA MONTANA WASHINGTON IDAHO The Two-Pipe Solution • Mackenzie Valley shortest, least cost for Delta gas • Alaska Highway quickest, least cost for Alaska North Slope Gas • Environmentally and technically superior • Least cost, lowest risk solution

10. Alaska Highway Gas Pipeline Project • 2820 km, 42” diameter • Operating pressure: 2050 psi • Initial volumes:2.5 Bcf/d • Ultimate volumes:4.0 Bcf/d • Initial cost:US$7.6 billion • Ultimate cost:US$9.7 billion • 2 Year construction • Estimated Toll: ~US $1/mcf Ivvavik National Park Prudhoe Bay Mackenzie Delta Arctic National Wildlife Reserve Alaska Nunavut Yukon Flats Wildlife Reserve Northwest Territories Anchorage Yukon Whitehorse Manitoba Alberta British Columbia Saskatchewan Gordondale Prebuild NORTH DAKOTA MONTANA WASHINGTON IDAHO

11. Mackenzie Valley PipelineLowest Cost, Quickest to Market for Delta Gas Ivvavik National Park Mackenzie Delta Route Description • 1220 km, 30” diameter • Operating Pressure 2050 psi • Initial Volumes 0.8 Bcf/d • Ultimate Volumes 1.2 Bcf/d • Initial Cost US $2.0 billion • 2 Year Construction Arctic National Wildlife Reserve Alaska Inuvik Nunavut Yukon Flats Wildlife Reserve Northwest Territories Yukon Manitoba Alberta British Columbia Saskatchewan NORTH DAKOTA MONTANA WASHINGTON IDAHO

12. The Mackenzie Valley...a priority for TransCanada • A stand-alone Mackenzie Valley Pipeline is a strategic priority for TransCanada • It is the closest, least costly project to access incremental gas supply • It is a good fit with TransCanada’s existing facilities

13. Route Considerations • General route based on historical data • Route refinement will consider: • aboriginal issues -- traditional knowledge • environmentally sensitive areas • existing utility corridors • presence of permafrost, ice content • stability of permafrost slopes • frost heave & thaw settlement potential • drainage and erosion

14. Construction Issues • 2 - 3 year winter construction • plus 1 year prior for logistics (barging in equipment in summer) • River crossings -- 4 major rivers greater than 275 m in width • Continuous permafrost and discontinuous permafrost • manage with combination of route location, thickness of pipe and temperature of gas

15. TransCanada is Uniquely Positioned Ivvavik National Park • Extensive system south of 60 • Alberta System can be economically ‘right-sized’ to accommodate Delta volumes • Efficient use of existing facilities • Lowest overall transportation cost to market Mackenzie Delta Arctic National Wildlife Reserve Alaska Inuvik Nunavut Yukon Flats Wildlife Reserve Northwest Territories Yukon Manitoba Alberta British Columbia Saskatchewan NORTH DAKOTA MONTANA WASHINGTON IDAHO

16. What TransCanada Offers • Extensive experience in large pipe construction and natural gas operation in extremely cold weather • Successful project management expertise • Lowest cost alternative

17. Conclusions • Gas from both Northern basins will be required to meet growing demand • Each basin will be developed when appropriate for that area • Producers currently studying feasibility of pipelines out of each area • TransCanada is uniquely positioned to play a key role in getting Northern natural gas to the growing North American marketplace • We will work with all stakeholders to help develop the best options for safe, reliable delivery of natural gas

18. Thank you