On Dec. 22, 2006, TransCanada signed an agreement to acquire 100 per cent of the ANR Pipeline Company and ANR Storage Company, and an additional 3.55 per cent of Great Lakes Gas Transmission Company from El Paso Corporation bringing TransCanada’s total interest to 53.55 per cent. In a separate transaction, TC PipeLines, LP announced its intent to acquire the remaining 46.45 per cent. Both acquisitions are expected to close in the first quarter of 2007, pending regulatory approvals.

The plan will significantly expand TransCanada’s continental natural gas pipeline and storage operations, and will establish it as one of the continent's largest gas storage operators. It will expand the company's pipeline network by around 40 per cent and nearly triple its capacity to store natural gas.

“With the acquisition of ANR, TransCanada’s wholly owned natural gas pipeline network will extend more than 59,000 kilometres (36,660.9 miles) and offer 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 will have interests in approximately 360 billion cubic feet of storage capacity, making it one of North America’s largest gas storage operators.”

“This acquisition represents a unique opportunity to invest in regulated natural gas pipeline and storage assets that are a strong fit with our existing North American footprint,” Hal continued. “They are high quality assets that will strengthen our position as a leader in the North American gas transmission business. They will also complement our growing portfolio of energy infrastructure assets that include significant power generation and gas storage operations as well as proposed liquefied natural gas terminals and crude oil pipelines.”

ANR operates one of the largest interstate natural gas pipeline systems in the United States, providing transportation, storage, and various capacity-related services to a variety of customers in both the U.S. and Canada. The system consists of 17,000 kilometres (10,500 miles) of pipeline with a peak-day capacity of 6.8 billion cubic feet per day (Bcf/d). It transports natural gas from producing fields in Louisiana, Oklahoma, Texas and the Gulf of Mexico to markets in Wisconsin, Michigan, Illinois, Ohio and Indiana. The pipeline system also connects with numerous other pipelines providing customers with access to diverse sources of supply from Western Canada and the Rocky Mountain region, and access to a variety of end-user markets in the Midwestern and Northeast United States.

ANR also owns and operates numerous underground natural gas storage facilities in Michigan with a total capacity of approximately 230 Bcf. Its facilities offer customers a high level of service flexibility allowing them to meet peak-day delivery requirements and to capture the value resulting from changing supply and demand dynamics. As part of the acquisition TransCanada will also obtain certain gas supplies contained within production and storage reservoirs in Michigan.

Great Lakes owns and operates a 3,400 kilometre (2,115 mile) interstate natural gas pipeline system with a design capacity of 2.5 Bcf per day. Extending from the Minnesota-Manitoba border at Emerson to the Michigan-Ontario border at St. Clair, Great Lakes provides a direct, cost-effective link between Western Canada’s abundant natural gas basin and major industrial and market centers in Minnesota, Wisconsin, Michigan and eastern Canada.

For more information, visit TransCanada's website.