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TransCanada Signs MOU with State of Alaska

CALGARY, Alberta – April 20, 2004 – (TSX: TRP) (NYSE: TRP) – TransCanada Corporation today announced that it has signed a memorandum of understanding (MOU) with the State of Alaska. In the MOU, TransCanada has committed to file an application under the state's Stranded Gas Development Act, and the state will resume processing of TransCanada's long-pending application for a right-of-way lease for the project.

“TransCanada has championed the development of an Alaska gas pipeline for more than two decades,” said Hal Kvisle, TransCanada's chief executive officer. “We look forward to working with the State of Alaska and the Alaska North Slope producers to develop a workable and economic commercial arrangement for the shipment of Alaska gas to the Alberta Hub and on to North American markets.”

In the MOU, the state and TransCanada recognize the critical importance of upstream fiscal negotiations between the State and the North Slope producers. “TransCanada remains focused on the development of a commercially sound transportation proposal,” said Mr. Kvisle. “We look forward to resolving pipeline fiscal issues in parallel with upstream negotiations between the state and the Alaska North Slope producers.”

Once a right-of-way lease has been issued by the state and commercial arrangements adequate to support financing are in place, TransCanada would be prepared to convey the Alaska right-of-way lease to the corporation or partnership that would undertake construction of the project within Alaska. Such conveyance would be subject to an exclusive interconnection agreement with TransCanada at the Alaska/Yukon border.

TransCanada will continue to lead the development of the Canadian portion of the project, and will work with Alaska partners to develop the Alaska portion. TransCanada has agreed to reimburse the State of Alaska for actual costs of processing the right-of-way agreement, and to reimburse up to $1.5 million of processing costs related to its Stranded Gas application.

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 39,000 kilometres (24,200 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 nearly 4,700 megawatts of power – an equal amount of power can meet the needs of about 4.7 million average households. TransCanada’s common shares trade under the symbol TRP on the Toronto and New York stock exchanges.

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:

Hejdi Feick / Kurt Kadatz
(403) 920-7859

Investor & Analyst Inquiries:

David Moneta / Debbie Stein
(403) 920-7911