TransCanada and Irving Oil Limited to Build 90 Megawatt Cogeneration Plant

CALGARY, Alberta/SAINT JOHN, New Brunswick - October 24, 2003 - (TSX: TRP) (NYSE: TRP) - TransCanada Corporation and Grandview Cogeneration Corporation, an affiliate of Irving Oil Limited, announced today they have reached an agreement to build a 90 megawatt natural gas-fired cogeneration power plant on the site of the Irving Oil Refinery in Saint John, New Brunswick.

The "Grandview" cogeneration facility will be developed and owned by TransCanada. Under a 20-year tolling arrangement, Irving will provide fuel for the plant and contract for 100 per cent of the plant's heat and electricity output.

Capital cost of the Grandview plant is estimated at approximately $85 million. Approximately 200 jobs would be created over the course of construction, which is anticipated to begin in November 2003, pending regulatory approvals. Irving first announced plans to develop a cogeneration facility at the Irving Oil Refinery in July 2002. Since then, TransCanada and Irving have been focused on finalizing their agreement and obtaining environmental approvals for the facility. The Grandview Cogeneration plant is expected to be in service by the end of 2004.

"The Grandview plant is consistent with TransCanada's objective of building a balanced portfolio of low-cost, efficient power generation assets," said Hal Kvisle, TransCanada's chief executive officer. "TransCanada brings significant expertise to the development of mid-to-large size cogeneration power plants and we are proud that with this facility our operations will expand into Atlantic Canada."

"This project represents the kind of opportunity for investment in the region we said would be possible when we committed to purchase over $1-billion of Sable's natural gas production and helped make the Saint John lateral a reality," said Kenneth Irving. "We remain strongly committed to re-investment in the region and the continued economic opportunities that are created as a result. Cogeneration is a great environmental story, because we can make even more energy using the same amount of natural gas. Cogeneration has other benefits as well - major power outages due to ice storms or hurricanes, for example, would be unlikely to affect our refinery, allowing our people to continue producing fuels essential to our region."

Founded in 1924, Irving Oil is the regional energy processing, transporting, and marketing company focusing on customer service and supply chain management. Irving Oil serves customers in Eastern Canada, Quebec, and New England with a range of finished energy products, including gasoline, diesel, home heating fuel, jet fuel and complementary products and services. Irving Oil's 250,000 barrel per day Saint John Refinery is Canada's largest and produces fuels years ahead of environmental regulations. In 2003, Irving Oil became the first oil company to win a USEPA Clean Air Excellence award, which it won for its low sulphur gasoline.

TransCanada is a leading North American energy company. We are focused on natural gas transmission and power services with employees who are expert in these businesses. Our network of approximately 38,000 kilometres (24,000 miles) of pipeline transports the majority of Western Canada's natural gas production to the fastest growing markets in Canada and the United States. Including the Grandview facility, TransCanada owns, controls or is constructing nearly 4,700 megawatts of power - an equal amount of power can meet the needs of about 4.7 million average households. Our 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:

TransCanada Media Inquiries:

Glenn Herchak / Hejdi Feick
(403) 920-7877

Investor & Analyst Inquiries:

David Moneta / Debbie Stein
(403) 920-7911