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TRANSCANADA AND ANR TO BUILD PIPELINE TO BOSTON

 CALGARY, Alberta, Feb. 10 /PRNewswire/ -- TransCanada PipeLines Ltd. (Toronto: TRP) and ANR Pipeline Co., a subsidiary of The Coastal Corp. (NYSE: CGP), announced that they have entered into a Letter of Intent relating to the construction of the Mayflower Pipeline, a new natural gas pipeline system that will significantly expand natural gas transmission, sales and storage services to U.S. markets in the Northeast.
 The proposed 200-mile pipeline will extend east from the Iroquois Gas Transmission System at Canajoharie, N.Y. through southern Vermont to a location near Boston. Construction of the project is subject to receipt of all federal regulatory approvals. Initial capacity will be 350 million cubic feet of natural gas per day to serve the growing incremental market for gas in southeast New England. The estimated project cost of the Mayflower Pipeline is (U.S.) $320-360 million and the anticipated in-service date is 1996. It is anticipated the joint venture pipeline will include additional partners and the construction cost will be project financed.
 Through interconnections, the Mayflower system will have the ability to tap major natural gas supply basins in both the United States and Canada. These natural gas supplies will be made available to markets at very competitive transportation costs relative to other existing or proposed alternatives.
 "Existing and proposed transportation capacity cannot provide the degree of service required by the power generation market under the Clean Air Act and the incremental growth in demand by local distribution companies," said Gerry J. Maier, TransCanada's chairman, president and chief executive officer. "Additional firm gas transportation capacity will be needed to serve this incremental demand."
 "The extensive network of interstate pipelines west of Iroquois will provide markets with the most flexible and most competitive routing into Iroquois for redelivery into the Mayflower system," said James R. Paul, Coastal's president and chief executive officer.
 He pointed out the construction of this new pipeline system will have minimum impact on the environment. Most of the new 200 miles of pipeline will be constructed in existing utility-transmission rights- of-way.
 TransCanada PipeLines Ltd. is a Calgary-based pipeline company with $8 billion in assets. It has more than 7,000 miles of trunklines and is a leading aggregator of natural gas in North America. The company has operations in natural gas transmission, liquids extraction plants, natural gas marketing, chemicals and electric power generation.
 ANR Pipeline Co. is a subsidiary of The Coastal Corp., a Houston- based energy holding company with consolidated assets of more than $9 billion and subsidiary operations in natural gas transmission and storage, refining and marketing, oil and gas exploration and production, coal, chemicals, trucking and independent power production.
 -0- 2/10/93
 /CONTACT: Frank Dabbs of TransCanada PipeLines Ltd., 403-267-8525/
 (CGP)


CO: TransCanada PipeLines Ltd. ST: Alberta IN: OIL SU: JVN

EH -- LA010 -- 5055 02/10/93 10:07 EST
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Publication:PR Newswire
Date:Feb 10, 1993
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