TransCanada Expands Gas Storage Capacity

CALGARY, Alberta – January 19, 2005 – (TSX: TRP) (NYSE: TRP) – TransCanada Corporation announced today it is developing a $200 million natural gas storage facility near Edson, Alberta. The Edson facility will have a capacity of approximately 50 billion cubic feet (Bcf) and will connect to TransCanada’s Alberta System. In addition, TransCanada has recently secured a long-term contract with a third party for up to 40 Bcf of existing, Alberta-based storage capacity.

These developments position TransCanada to become one of the largest natural gas storage providers in Western Canada. Upon completion of the Edson facility, TransCanada will own or control more than 110 Bcf, or approximately one third, of the storage capacity in Alberta. TransCanada intends to be in a position to provide fee-based gas storage services directly to customers by April 2005, with additional capacity available from the Edson facility commencing early in the second quarter of 2006, on a phased-in basis.

The company currently owns 60 per cent of CrossAlta Gas Storage & Services Ltd., which operates a 40-Bcf storage facility near Crossfield, Alberta. TransCanada’s gas storage business will continue to be operated independently from its regulated natural gas transmission business.

“The Edson facility strengthens our position in the natural gas storage business and will enhance Alberta’s position as a major natural gas hub in North America,” said Hal Kvisle, TransCanada’s chief executive officer. “We have operated in the Western Canada Sedimentary Basin for more than 40 years, we know the gas storage business through our 10-year involvement in CrossAlta, and we see our growth in gas storage as a natural extension of our natural gas transmission business.”

Currently, market fundamentals for natural gas storage are strong. The imbalance in North American natural gas supply and demand has created natural gas price volatility, resulting in demand for storage service. TransCanada believes Alberta-based storage will continue to serve market needs and could play an important role should Northern gas be connected to North American markets.

TransCanada is a leading North American energy company. TransCanada is focused on natural gas transmission and power services with employees who are expert in these businesses. TransCanada’s network of approximately 41,000 kilometres (25,600 miles) of pipeline transports the majority of Western Canada’s natural gas production to the fastest growing markets in Canada and the United States. TransCanada owns, controls or is constructing more than 4,700 megawatts of power generation – enough to meet the electricity needs of about 4.7 million average households. The Company’s common shares trade under the symbol TRP on the Toronto and New York stock exchanges.

Note: All financial figures are in Canadian dollars unless noted otherwise.

FORWARD LOOKING INFORMATION

Certain information in this news release is forward-looking and is subject to important risks and uncertainties. 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, competitive factors in the pipeline and power industry sectors, and the current economic conditions in North America. For additional information on these and other factors, see the reports filed by TransCanada with Canadian securities regulators and with the United States Securities and Exchange Commission. TransCanada disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

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For further information, please contact:

Media Inquiries:

TransCanada
Hejdi Feick / Kurt Kadatz
(403) 920-7859 or Toll Free (800) 608-7859

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David Moneta
(403) 920-7911