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TRANSGAS ANNOUNCES SALE OF SALT CAVERNS AT LANDIS

Released on August 26, 1997

TransGas Limited, a subsidiary of SaskEnergy, announced today that it

has signed a letter of intent with Canadian Crude Separators (CCS) to

sell its salt cavern facility at Landis for $1.2 million and other

financial considerations. Closing of the agreement is subject to

final regulatory approval.



CCS intends to develop the site to store naturally-occurring oil

by-products. The company will convert the facility consistent with

standard industry practices in Saskatchewan and will be required to

adhere to strict environmental, safety and operational regulations.



"Because we will be investing in converting the site, this project

will stimulate new economic activity in the Landis area," Rene

Amirault, CCS Vice President, Marketing said. "We appreciate that

TransGas and the local area government have been supportive of this

venture, which will further help encourage the growing oil industry in

Saskatchewan."



The agreement follows an agreement reached by TransGas to sell two

salt caverns in Melville in July to Plains Environmental Ltd.



"These sales are helping us to attract additional revenue and

also to meet our customers' expectation that TransGas will

operate as efficiently as possible," Ron Clark, SaskEnergy

President and CEO, said. "The sale proceeds from these assets

will ensure that TransGas will stay competitive into the future,

keeping our province attractive for economic development,

investment and jobs."



-30-



For more information, contact:



Ron Podbielski Rene Amirault

Corporate Affairs VP, Marketing

SaskEnergy Canadian Crude Separators Inc.

Regina Calgary

Phone: (306) 777-9432 Phone: (403) 231-1119



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