Press Release

ENRON ANNOUNCES AGREEMENT TO SELL LOUISIANA-BASED NATURAL GAS LIQUIDS COMPANY AND WHOLESALE PROPANE MARKETING BUSINESS

FOR IMMEDIATE RELEASE: Thursday, January 23, 1997

HOUSTON -- ENRON announced today that it has executed a definitive agreement for the sale of two liquids businesses to a subsidiary of TransCanada PipeLines Limited for $150 million. In addition, as a result of the sale, ENRON will be released of leveraged lease obligations.

Upon closing, which is expected to occur at the end of January, a TransCanada subsidiary will acquire the stock of Enron Louisiana Energy Company (ELEC), a major natural gas processor and natural gas liquids producer and fractionator, which owns or holds majority interests in five processing plants, two liquids pipelines and a salt dome storage facility in Louisiana. TransCanada also will acquire ENRON 's wholesale propane marketing business, which is supplied in large measure from ELEC facilities and operates a propane terminal in Lynchburg, Virginia.

"The divestiture of these assets is consistent with our strategy of focusing on core businesses and reducing non-strategic long term financial obligations," said Stanley C. Horton, chairman and chief executive officer, Enron Liquid Services Corp.

ENRON announced in 1996 that it would sell four liquids asset packages identified as non-strategic. The first of these -- the sale of ENRON's interests in Enron Liquids Pipeline, L.P. -- was announced in January and the company expects to close all of the transactions during the first half of 1997. The TransCanada sale is the second of the four packages.

TransCanada is one of North America's leading transporters of natural gas and also operates significant energy marketing, electric power generation, gas liquids extraction, specialty chemicals and carbon black manufacturing businesses.

ENRON, one of the world's largest integrated natural gas and electricity companies with approximately $15 billion in assets, operates one of the largest natural gas transmission systems in the world; is the largest purchaser and marketer of natural gas and the largest non-regulated marketer of electricity in North America; markets natural gas liquids worldwide; manages the largest portfolio of fixed-price natural gas risk management contracts in the world; is among the leading entities arranging new capital to the energy industry; owns a majority interest in Enron Oil & Gas Company, one of the largest independent (non-integrated) exploration and production companies in the United States; owns a majority interest in Enron Global Power & Pipelines L.L.C., which is owner and manager of operating power plants and natural gas pipelines around the world; and is one of the largest independent developers and producers of electricity in the world. ENRON is traded under the ticker symbol, "ENE."

For additional information please contact:

Elaine Thomas

(713) 853-6814