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

2. 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. 3 TransCanada Foothills Northern Border Great Lakes Trans Quebec & Maritimes Iroquois Portland Tuscarora BRITISH COLUMBIA ALBERTA SASKATCHEWAN MANITOBA ONTARIO QUEBEC NUNAVUT YUKON NORTHWEST TERRITORIES Chicago Winnipeg Regina Calgary Niagara Montreal Longlac Empress Edmonton Vancouver Yellowknife Fort Nelson Power Plants (Includes Plants Under Development Bear Creek Williams Lake MacKay River Sundance A Redwater Carseland Cancarb Nipigon Calstock Kapuskasing Tunis North Bay Curtis Palmer Castleton Ocean State TransCanada’s Pipeline and Power Assets

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

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

6. 6 Western Canadian Supply Response # of Gas Wells 0 1000 2000 3000 4000 5000 6000 7000 8000 9000 4 6 8 10 12 14 16 199019952000 Development Exploration 5330 1006 8500 6350 Deliverability

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

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

9. 9 The Two-Pipe Solution Arctic National Wildlife Reserve Yukon Flats Wildlife Reserve Ivvavik National Park Prudhoe Bay Mackenzie Delta Alaska Yukon Northwest Territories Nunavut Manitoba Saskatchewan Alberta British Columbia WASHINGTON IDAHO MONTANA Inuvik NORTH DAKOTA 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. 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 Arctic National Wildlife Reserve Yukon Flats Wildlife Reserve Ivvavik National Park Prudhoe Bay Mackenzie Delta Alaska Yukon Northwest Territories Nunavut Manitoba Saskatchewan Alberta British Columbia WASHINGTON IDAHO MONTANA Gordondale NORTH DAKOTA Anchorage Whitehorse Prebuild

11. 11 Mackenzie Valley Pipeline Lowest Cost, Quickest to Market for Delta Gas 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 Yukon Flats Wildlife Reserve Ivvavik National Park Mackenzie Delta Alaska Yukon Northwest Territories Nunavut Manitoba Saskatchewan Alberta British Columbia WASHINGTON IDAHO MONTANA Inuvik NORTH DAKOTA

12. 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. 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. 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. 15 TransCanada is Uniquely Positioned 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 Arctic National Wildlife Reserve Yukon Flats Wildlife Reserve Ivvavik National Park Mackenzie Delta Alaska Yukon Northwest Territories Nunavut Manitoba Saskatchewan Alberta British Columbia WASHINGTON IDAHO MONTANA Inuvik NORTH DAKOTA

16. 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. 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