TransCanada Closes ANR Acquisition and Expands North American Reach

CALGARY, Alberta – February 22, 2007 – TransCanada Corporation (TSX: TRP)  (NYSE:TRP) (TransCanada) today announced it has closed the acquisition of American Natural Resources Company and ANR Storage Company (collectively, ANR) and an additional 3.55 per cent interest in Great Lakes Gas Transmission Limited Partnership (Great Lakes) from El Paso Corporation. The total purchase price is US$3.4 billion, subject to certain post closing adjustments, and includes US$488 million of assumed debt.

“With the acquisition of ANR, TransCanada’s wholly owned natural gas pipeline network extends more than 59,000 kilometres and offers our customers unparalleled connections from traditional and emerging supply basins to growing North American markets,” said Hal Kvisle, TransCanada’s chief executive officer. “By acquiring more than 230 billion cubic feet of natural gas storage capacity, TransCanada has interests in approximately 360 billion cubic feet of storage capacity, making us one of North America’s largest gas storage operators.”

These high quality, regulated assets are a strong fit with TransCanada’s existing North American portfolio, and strengthen our position as a leader in the North American gas transmission business. The assets are expected to deliver significant value for shareholders. TransCanada expects the acquisition to be accretive to earnings in 2007.

The acquisition was financed through a $1.5 billion Subscription Receipts offering that closed on February 14, 2007; cash on hand; and funds drawn on newly established bridge and term loan facilities. With today’s closing of the ANR acquisition, the escrow release condition for the Subscription Receipts has been met, the transfer register for the Subscription Receipts will close today at 5:00 p.m. (local time in Calgary and Toronto), and the Subscription Receipts will automatically be exchanged on a one-to-one basis for TransCanada common shares through the facilities of The Canadian Depository for Securities Limited effective as of today’s date.

In connection with the offering of the Subscription Receipts, TransCanada granted the underwriters of the Subscription Receipts offering an option to purchase an additional 5,920,500 common shares at a price of $38.00 per common share at any time up to and including March 16, 2007.

Lee Hobbs has been appointed Vice President and General Manager, U.S. Pipelines Central. Based in Houston, he will be responsible for the operation of ANR and Great Lakes. A new executive leadership team has been selected for ANR and Great Lakes which includes executives from TransCanada, ANR and Great Lakes, providing a breadth and depth of valuable industry experience.

In a separate transaction, TC PipeLines, LP (the Partnership) today announced it has closed the acquisition of a 46.45 per cent interest in Great Lakes from El Paso for approximately US$962 million, subject to certain closing adjustments, including US$212 million of assumed debt. TransCanada is the General Partner and owns approximately 32 per cent of the Partnership. 

With more than 50 years experience, TransCanada is a leader in the responsible development and reliable operation of North American energy infrastructure including natural gas pipelines, power generation, gas storage facilities, and projects related to oil pipelines and LNG facilities. TransCanada’s network of wholly owned pipelines extends more than 59,000 kilometres (36,500 miles), tapping into virtually all major gas supply basins in North America. TransCanada is one of the continent’s largest providers of gas storage and related services with approximately 360 billion cubic feet of storage capacity. A growing independent power producer, TransCanada owns, or has interests in, approximately 7,700 megawatts of power generation in Canada and the United States. TransCanada’s common shares trade on the Toronto and New York stock exchanges under the symbol TRP.

FORWARD-LOOKING INFORMATION

This news release may contain certain information that is forward-looking and is subject to important risks and uncertainties. The words "anticipate", "expect", "may", "should", "estimate", "project", "outlook", "forecast" or other similar words are used to identify such forward looking information. All forward-looking statements are based on TransCanada’s beliefs and assumptions based on information available at the time such statements were made. The results or events predicted in this information may differ from actual results or events. Factors which could cause actual results or events to differ materially from current expectations include, among other things, the ability of TransCanada to successfully implement its strategic initiatives and whether such strategic initiatives will yield the expected benefits, the availability and price of energy commodities, regulatory decisions, changes in environmental and other laws and regulations, competitive factors in the pipeline and energy industry sectors, construction and completion of capital projects, access to capital markets, interest and currency exchange rates, technological developments and the current economic conditions in North America. By its nature, such forward‑looking information is subject to various risks and uncertainties which could cause TransCanada's actual results and experience to differ materially from the anticipated results or other expectations expressed.  For additional information on these and other factors, see the reports filed by TransCanada with Canadian securities regulators and with the United States Securities Exchange Commission. Readers are cautioned not to place undue reliance on this forward‑looking information, which is given as of the date it is expressed in this news release or otherwise, and TransCanada undertakes no obligation to update publicly or revise any forward‑looking information, whether as a result of new information, future events or otherwise, except as required by law.

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For further information, please contact:

Media Inquiries:

TransCanada
Shela Shapiro
(403) 920-7859 or Toll Free (800) 608-7859

Investor & Analyst Inquiries:

David Moneta/Myles Dougan
(403) 920-7911

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