SAN DIEGO and CALGARY - May 11, 2005 - TransCanada Corporation and Sempra Energy announced a joint open season to solicit shipper interest in a potential expansion of the existing North Baja pipeline system, comprised of TransCanada's North Baja Pipeline (NBP) and Gasoducto Bajanorte Pipeline (GB) and Transportadora de Gas Natural de Baja California (TGN), both owned by Sempra. These pipelines currently serve natural gas demand in the southwestern United States and Baja California, Mexico.

Shippers already have contracted for capacity to move gas from Sempra's Energia Costa Azul liquefied natural gas (LNG) regasification terminal currently under construction in Baja California to downstream markets. The proposed expansions contemplated by this open season would provide additional pipeline capacity for the potential expansion of the Energia Costa Azul terminal or any additional LNG terminals planned for the area. The open season will gauge shipper interest in moving volumes away from any additional or expanded LNG regasification facilities.

The open season procedures offer a non-discriminatory means of providing transportation access to markets throughout Baja California and to the southwestern United States for any additional installed regasification capacity. The two owners are working together to jointly market capacity on their respective pipelines. NBP will administer the open season; however, contracts will be executed by each pipeline as required.

The open season expires at 5 p.m. Pacific Daylight Time on Wednesday, June 8, 2005. Based on expressions of interest, the companies will determine the facilities required to provide the requested service. The parties will have until Sept. 1, 2005, to enter into binding firm transportation precedent agreements (FTPA). Proposed in-service date for the expansion capacity will accommodate shipper requests, subject to permits and construction constraints.

"North Baja is ideally situated to play a major role in transporting re-gasified LNG from an expanded terminal facility into various U.S. markets," said Jeff Rush, general manager of TransCanada's GTN and North Baja systems.

"With the high energy demand growth on both sides of the border and the increasing role of LNG, we expect a strong market response to this open season," said Ryan O'Neal, vice president of Sempra Pipelines & Storage.

The existing 220-mile North Baja pipeline system - comprised of NBP and GB, went into service in 2002, while TGN went into service in 2000. It begins at an interconnection with El Paso Corporation natural gas pipelines near Ehrenberg, Ariz., and crosses into Southern California before entering the Mexican state of Northern Baja California. The line parallels the U.S.-Mexico border for 140 miles before reaching an interconnection with TGN near Tijuana, Mexico.

As the result of a previous open season, the operators are obtaining necessary permits and will reverse the flow direction of the pipeline. They will add the necessary facilities to transport re-gasified LNG when the Energia Costa Azul LNG terminal comes on-line, perhaps as early as 2007.

Potential customers interested in participating in the open season can find more information by visiting the following Web sites: www.northbajapipeline.com and www.gasoducto-bajanorte.com or contacting Mike Burke at 503 833 4509.