2004 First Quarter Results Conference Call

February 19, 2004

@ 4:00 PM (ET)

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Table of Contents

I. Highlights

II. Normalized Volumes

III. Segmented Data

IV. 2004 First Quarter Results

V. Competitive Situation

VI. Evolution of Gas Prices

VII. Conclusion

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Highlights

Partner’s income of $71.8 M, up 1.5% or $1.0 M Increase in the transportation sector Negative impact of the decrease in the federal income tax

rate for the distribution sector

Partners’ income per unit of $0.63, down 1.6% or $0.01 An additional 4.0 M units outstanding, or 3.6%, compared

with previous year Negative impact of the stronger canadian dollar

Cash flow from operations (before working capital items) of $120.7 M, down 6.0% or $7.7 M

Temperature warmer than normal and than Q1 2003

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Normalized Volumes

Note: Differences are due to rounding

Conversion factor: 1 billion cubic feet = 28.328 million cubic metres

2004 2003 Bcf %

(in billions of cubic feet )Markets

Industrial firm 21.0 22.1 -1.1 -4.8% Industrial interruptible 8.5 9.5 -1.0 -10.6%

Commercial 22.0 21.8 0.2 1.2%Residential 8.5 8.2 0.3 2.8%TOTAL 60.0 61.6 -1.6 -2.6%

2004 2003 106m3 %(in millions of cubic metres)Markets

Industrial firm 596 626 -30 -4.8% Industrial interruptible 241 270 -29 -10.6%

Commercial 623 616 7 1.2%Residential 240 234 6 2.6%TOTAL 1,700 1,746 -46 -2.6%

3 months ended Dec. 31

3 months ended Dec. 31

Change

Change

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Segmented Data

(Partners’ income in thousands of $)

Distribution TransportationEnergy

Servicesand Other

Non-allocatedexpenses andeliminations

Total

3 months endedDec. 31, 2003 64,114 6,166 1,545 -18 71,807

3 months endedDec. 31, 2002 64,030 4,728 2,068 - 64 70,762

$ Change +84 +1,438 -523 +46 +1,045

% Change 0.1 +30.4 NA NA +1.5

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Financial Results(in millions of $, except per unit data, in $)

1 Excluding change in non-cash working capital2 Excluding deferred charges related to gas cost of + $16.4 M and + $11.8 M for 2004 and 2003 respectively,

but including commercial programs and information system development.

Note: Differences are due to rounding

2004 2003 $ %Revenues 524.6 501.6 23.0 4.6%

Gross Margin 172.4 171.7 0.7 0.4%Partners' Income 71.8 70.8 1.0 1.4%Partners' Income per unit 0.63 0.64 -0.01Weighted average # of units O/S 114.5 110.5Number of units O/S 114.5 110.5

Cash Flow from operations 1 120.7 128.5 -7.8 -6.1%

Distributions 37.6 35.4 2.2 6.2%Maintenance CAPEX 8.8 7.5 1.3 17.3%Free CF 74.3 85.6 -11.3 -13.2%

Expansion & Developement 23.7 24.1 -0.4 -1.7%

Deferred Charges2 11.1 7.0 4.1 58.6%

Net Free CF before W/C 39.5 54.5 -15.0 -27.5%

Dec. 31, 2003 Sept. 30 2003Total Assets 2,526.4 2,430.9 95.5 3.9%Total Debt 1,277.5 1,319.4 -41.9 -3.2%Partners' Equity 916.2 876.0 40.2 4.6%

Change3 months ended Dec. 31

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Competitive Situation

How competitive is natural gas in Québec ?

Market Main Competitor How competitive*

Industrial Fuel oil #6 More expensive but more flexible and less polluting

Commercial & Electricity 8% cheaperInstitutional

Residential Electricity 11% to 22% more expensive

* Based on last 12 month historical prices.

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Evolution of Gas Prices

As of February 13, 2004

6.36

6.10

5.84

1

3

5

7

9

11

13

Apr-01 Aug-01 Dec-01 Apr-02 Aug-02 Dec-02 Apr-03 Aug-03 Dec-03

$/G

J

GazMet System Gas Empress Spot Empress 1-year contract

Sources: Bloomberg and Gaz Métro

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Conclusion

Distribution of $0.34 per unit to be paid on April 1, 2004

Change in the consolidation method for the investment in PNGTS

Since November 17, 2003, use of the equity method (formerly proportionate consolidation method)

Increase in earnings despite the negative impact of the federal income tax rate and of the strong canadian dollar