PART 1 OF 3 - Westcoast Energy Announces Improved First Quarter Results.

VANCOUVER, British Columbia--(BUSINESS WIRE)--April 29, 1999--

Westcoast Energy Inc. (Westcoast)(TSE:W.) (ME:W.) (VSE:W.) (NYSE:WE) announced improved results for the three months ending March 31, 1999. Net income applicable to common shares was $123 million for the first quarter of 1999, compared with $103 million for the same period in 1998. Earnings per common share were $1.08 for the first quarter of 1999 compared with $0.99 for the same period in 1998.

The Board of Directors declared a dividend of $0.32 per common share payable June 30, 1999, to shareholders of record on June 4, 1999.

Excluding the impact of weather, earnings per common share were $1.13 for the first quarter of 1999 compared with $1.18 in 1998.

"We are pleased to report an increase in net income this quarter," said Michael Phelps, Chairman and Chief Executive Officer of Westcoast. "Our two largest business operating units continue to provide steady results. However, warmer than normal weather continues to affect our gas distribution businesses."

Higher contributions were realized from new pipeline projects and improved results from Engage Energy. Tax savings and a small asset sale also added to earnings.

"We are in the midst of the largest capital investment program in this Company's history," said Mr. Phelps.

"Construction of the Maritimes & Northeast Pipeline will begin in May; Alliance Pipeline, the largest pipeline project in North America, has already commenced route clearing; the Cantarell Nitrogen Project in Mexico is now two-thirds complete; and we have a number of other projects well under way. We expect to invest some $1.6 billion this year alone and a similar amount next year," Phelps noted.

In early 1999, Westcoast announced an agreement in principle to sell its Centra Gas Manitoba distribution business for $245 million. The sale, subject to the completion of definitive agreements and receipt of required government and regulatory approvals, is scheduled to be completed before the end of July.

The sale of a small power transmission line near Fort Nelson, British Columbia, netted $3.0 million for Westcoast in the first quarter of 1999.

Westcoast Energy Inc. (TSE: W; NYSE: WE) headquartered in Vancouver, British Columbia, is a leading North American energy company with assets of approximately $11 billion. The Company's interests include natural gas gathering, processing, transmission, storage and distribution, as well as power generation, international energy businesses, and financial, information technology and energy services businesses. More information is available on the Company's Web site at www.westcoastenergy.com. -0-

(Westcoast Energy Inc. - First Quarter 1999)

                                     First Quarter Results
                                    3 Months Ended March 31
                                         ($million)
                                      1999             1998
-------------------------------------------------------------
Consolidated Revenue                 1,782             2,002
Net Income to Common                   123               103
Earnings Per Share                   $1.08             $0.99
Operating Cash Flow                    217               203

Consolidated Operations

Net income applicable to common shares was $123 million for the first quarter of 1999 compared with $103 million in 1998.

Earnings per common share were $1.08 for the first quarter of 1999 compared with $0.99 in 1998. Excluding the impact of weather, earnings per common share were $1.13 for the first quarter of 1999 compared with $1.18 in 1998.

Higher contributions were realized primarily from new pipeline projects, improved contributions from Engage Energy, higher utilization of previous years' unrecorded tax losses, continued growth in the number of gas distribution customers and the gain on the sale of the Company's investment in a short distance power transmission line in northeastern British Columbia.

These factors were offset by higher losses from the Company's retail energy services business and lower allowed rates of return on common equity for the majority of the Company's regulated businesses.

Consolidated revenues decreased in the first quarter of 1999 compared with 1998 primarily due to lower volumes traded by Engage Energy offset partially by colder weather in the first quarter of 1999 compared with 1998 and revenues generated in 1999 from the new heating, ventilation and air conditioning operations acquired by the Company's retail energy services business.

Consolidated operating cash flow was $217 million for the first quarter of 1999 compared with $203 million in 1998. Inclusive of non-cash working capital changes, consolidated operating cash flow was $367 million for the first quarter of 1999 compared with $331 million in 1998. Segmented Information

The operations of the Company have been grouped according to the following business segments:

Transmission & Field Services - natural gas gathering, processing and

transmission;

Gas Distribution - natural gas distribution and storage and

transmission;

Power Generation - electrical and thermal energy generated from

natural gas;

International - international operations;

Services - energy marketing, retail energy services and information

technology and financial services;

Other - other activities, including corporate expenses, business

development expenditures, corporate financing expenses and

utilization of previous years' unrecorded tax losses.

TRANSMISSION AND FIELD SERVICES

The contribution to net income applicable to common shares from the Transmission & Field Services segment for the first quarter of 1999 was $46 million compared with $36 million in 1998.

The increase in earnings is primarily due to higher equity earnings from the Company's investment in the Alliance Pipeline Project, the recording of higher allowance for funds used during construction applicable to the Maritimes & Northeast Pipeline Project and a higher contribution from the British Columbia Pipeline and Field Services divisions.

British Columbia Pipeline and Field Services Divisions

The contribution to net income applicable to common shares from the British Columbia Pipeline and Field Services divisions for the first quarter of 1999 was $31 million compared with $30 million in 1998.

The increase is primarily due to higher earnings realized under the multi-year incentive-based toll settlement. Under the settlement, gathering and processing tolls are partially indexed to natural gas prices in representative market areas served by gas transported through the system. These gas prices were higher in the first quarter of 1999 compared to the same period in 1998 resulting in higher revenues.

The increase is partially offset by lower contract demand revenue and lower interruptible toll revenues in the first quarter of 1999 compared to the same period in 1998 and higher operating and maintenance costs in 1999 due to Year 2000 program costs.

Shippers holding one and three year gathering and processing service must elect to renew that service prior to May 1, 1999 for the gas year commencing on November 1, 1999. Approximately 20 percent of contracted gathering and processing capacity is subject to renewal at this time.

During the year, available capacity is advertised monthly and shippers can approach the Company to take service. In addition, the Company directly approaches customers with new gas to determine their gathering and processing needs. The Company expects that most of any relinquished capacity will be contracted by customers during the year either as firm or interruptible service.

In April 1998, the British Columbia Utilities Commission (BCUC) denied an application by BC Gas Utility Ltd. (BC Gas) to construct its proposed Southern Crossing Pipeline. In December 1998, BC Gas filed a new application with the BCUC requesting approval of a modified Southern Crossing Pipeline Project. The BCUC held a public hearing into BC Gas' new application in March 1999, and a decision is expected in the second quarter of 1999. As it did with BC Gas' previous application, the Company opposed the new application on the basis that the project is uneconomic and that there are lower cost alternatives to meet the peak day and seasonal demands of customers, including liquefied natural gas facilities such as the Company's proposed McNab Liquefied Natural Gas Project, and pipeline expansions on the Westcoast pipeline system.

In March 1999, the National Energy Board (NEB) issued a decision granting a request by BC Gas for the establishment of a receipt point on Westcoast's pipeline system at Kingsvale, British Columbia. The NEB ruled that the appropriate toll for this service should be approximately 24 cents per thousand cubic feet of natural gas rather than the 5 cents per thousand cubic feet of natural gas requested by BC Gas. BC Gas had made the application to the NEB to support its Southern Crossing Pipeline Project.

Pipeline Projects

Maritimes & Northeast Pipeline

The recording of allowance for funds used during construction by the Maritimes & Northeast Pipeline (M&NP) contributed $3 million to net income applicable to common shares for the first quarter of 1999 compared with $1 million for 1998.

The Company has a 37.5 percent interest in M&NP, which will transport in excess of 500 million cubic feet per day of natural gas sourced from offshore fields being developed near Sable Island to markets in Nova Scotia, New Brunswick, and the northeast United States. The 1,051-kilometre main pipeline and associated lateral pipelines are expected to cost approximately $1.8 billion to construct.

Construction related activities are underway on the main pipeline and the lateral pipeline to Point Tupper, Nova Scotia. The main pipeline and Point Tupper lateral pipeline are expected to be in service by November 1999.

The $78-million Halifax, Nova Scotia, and $91-million Saint John, New Brunswick laterals have not yet received approval from the NEB and, as a result, are anticipated to be in service in October 2000. Decisions on the Halifax and Saint John lateral pipelines are expected from the NEB by the end of 1999.

With respect to the portion of the pipeline in the United States, construction is largely complete on Phase I. Construction of Phase II will commence in May 1999 with an in-service date for the pipeline of November 1999. In April 1999, the Federal Energy Regulatory Commission (FERC) approved an amendment to the certificate in order to recognize that the initial firm contract volume on the U.S. portion of the main pipeline will be less than originally planned. The reduction in the initial firm contract revenue on the U.S. pipeline is attributable to the greater initial market development in Canada. Levelized rates have been approved by the FERC for the first four years of service for the U.S. pipeline.

Alliance Pipeline Projects

Equity earnings recorded by the Company for its investment in the Alliance Pipeline Projects contributed $5 million to net income applicable to common shares for the first quarter of 1999. Minimal equity earnings were recorded in 1998. Equity earnings in the Alliance Pipeline Projects relate to allowance for funds used during construction recorded by the Alliance Pipeline.

The Company has a 23.6 percent interest in the Alliance Pipeline and associated natural gas liquids recovery facilities. The Alliance Pipeline is designed to deliver an initial firm capacity of 1.325 billion cubic feet of natural gas per day from western Canadian producing areas in northern Alberta and British Columbia to the Chicago area. Direct capital costs including allowance for funds used during construction for the 3,100-kilometre pipeline are currently estimated at $5.1 billion. The Chicago area natural gas liquids recovery facilities associated with the Alliance Pipeline are expected to cost an additional $525 million.

Canadian and U.S. regulatory approvals have been received. Clearing has commenced on the Canadian portion of the pipeline right-of-way and pipeline construction will begin in May 1999. The Alliance Pipeline Projects are expected to be in operation in October 2000.