A View to The North Canadian International Petroleum Conference June 12, 2001 A View to The North Canadian International Petroleum Conference June 12, 2001

2 Topics I’ll Cover Overview of TransCanada Why Northern gas is needed Options -routes -downstream possibilities Current status

3 BRITISH COLUMBIA ALBERTA SASKATCHEWAN MANITOBA ONTARIO QUEBEC NUNAVUT YUKON NORTHWEST TERRITORIES Chicago Winnipeg Regina Calgary Niagara Montreal Longlac Empress Edmonton Vancouver Yellowknife Fort Nelson TransCanada’s Pipeline System (incl. partially owned) TransCanada PipeLines Foothills Pipe Lines Northern Border Pipelines Great Lakes Gas Transmission Trans Quebec & Maritimes Pipelines Iroquois Gas Transmission System Portland Transmission System Tuscarora Pipelines TransCanada’s power plants

4 TransCanada TransCanada has the second largest gas transmission system in the world - over 38,000 km We move 75% of Western Canada’s natural gas production to market We manage or control over 1900 MW of power

5 BRITISH COLUMBIA ALBERTA SASKATCHEWAN MANITOBA ONTARIO QUEBEC NUNAVUT YUKON NORTHWEST TERRITORIES Chicago Winnipeg Regina Calgary Melville MacKenzie Delta Niagara Montreal Longlac Empress Edmonton Vancouver Prudhoe Bay Yellowknife Pine Point Inuvik Fort Nelson Valdez Whitehorse Historical gas projects in the North DIRECT TO MARKET POLAR DELTA CAGPL FOOTHILLS MAPLE LEAF ALASKA HIGHWAY EL PASO ALASKA TRANS-ALASKA GAS DEMPSTER POLAR GAS Historical Proposals (Oldest First )

6 North American Demand Annual (Tcf) Daily (Bcf/d) Growth = 19 Bcf/d 50% related to power generation

7 2.5 Bcf/d 2.8%/yr 0.9 Bcf/d 2.3%/yr 2.7 Bcf/d 2.8%/yr 1.8 Bcf/d 3.4%/yr Total North American demand: 70 Bcf/d in Bcf/d in 2010 Total North American demand: 70 Bcf/d in Bcf/d in Bcf/d 2.3%/yr North American Gas Demand Growth 8.6 Bcf/d 2.3%/yr

8 North American Market Growth Forecast Arctic Frontier Gas represents about 1/4 of the incremental supply required Arctic Frontier Gas represents about 1/4 of the incremental supply required

9 Western Canadian Supply Response /9091/9293/9495/9697/9899/ Development Exploration Supply # of Wells Drilled Gas Supply (Bcf/d)

10 What that means for the North Frontier gas is essential to meet demand -It will help meet significant demand growth Supply/demand supports two pipelines

11 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

12 Two Pipeline Option 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 Two stand- alone pipelines provide least technological, environmental and operational risk

13 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

14 Alaska Highway Gas Pipeline Project Lowest Cost, Quickest to Market for ANS Gas Route Description 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 2 Year construction 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

15 Accessing Growth Markets Current facilities, with some additions, can move both Alaska and Mackenzie Valley gas to growth markets

16 Status Producers in both Mackenzie Delta and Prudhoe Bay studying routing options and determining timing Partnerships being formed -APG and Producers negotiating deal in Mackenzie Valley

17 Regulatory Status Mackenzie Valley -No approvals received -Looking to consolidate regulatory process where possible Alaska -Alaska Highway Natural Gas Transportation System has framework in place -- Northern Pipelines Act and the Alaska Highway Natural Gas Transportation Act -Certificates are in place and have been used -- they require current environmental protection standards

18 Outstanding Issues Producers timetables and development objectives Northern communities expectations Actual North American market demand Long-term natural gas price

19 TransCanada’s Expertise Existing facilities can get Northern gas to growth markets. Extensive experience in extreme cold weather - both in pipeline construction and in operation of natural gas pipelines

20 Technology and Experience Experience and technology to bring in projects on time and on budget From 1994 to 1999, we added over 3,900 km of large pipe to our system, almost equivalent to the two Northern projects combined

21 Summary Frontier gas is required to meet forecast demand Our efforts are focussed on complementing those of the producers TransCanada expertise can add value to any northern options

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