Toronto, October 7, 2004

Gaz Métro Limited Partnership

Scotia Capital

Investing for Income Conference

2

Table of Contents

I. Company Overview

II. Consolidated Financial Data

III. Growth Possibilities

IV. Five Strong Characteristics of Gaz Métro Units

V. Conclusion

VI. Appendix

Company Overview

4

Gaz Métro Overview

Pure regulated utility play with a limited partnership structure

Attractive 6.4% distribution yield 14.8% annualized total return since 1993

Distribution of business income

Units not considered as foreign property in a RRSP

General partner management fees limited to $50,000/year

Limited responsibility of unitholders

Strong ownership

5

Gaz Métro Strategy

Provide stable income to unitholders

Maintain strong credit rating

Consider strategic acquisitions with low risk and predictable and stable revenues

Achieve continuous growth

6

Natural Gas Distribution

Gaz Métro core business (100% regulated):

97% of Québec Province gas distribution

Vermont sole gas distributor

More than 10,000 km of gas distribution

pipeline

In % of 2003 consolidated results:

Revenues 93%

Gross Margin 85%

Assets 78%

7

Natural Gas DistributionPositioning

3rd largest natural gas distributor in Canada

#1 natural gas distributor in

Québec(97% market share)

Sole natural gas distributor in

Vermont, United States

8

Natural Gas DistributionGMLP

Normalized Volumes:

194 Bcf

System length:

9,318 km

Number of Customers:

153,684

2005 base rate of return:

9.69%

Capital Structure:

54% debt

7.5% deemed prefered equity

38.5% common equity

Regulated by the Régie de l’énergie

Quebec gas transport and supply system

9

Natural Gas DistributionVermont Gas

Normalized Volumes:

8 Bcf

System length:

935 km

Number of Customers:

35,032

2004 base rate of return:

10.98%

Capital Structure:

36.9% debt

63.1% common equity

Regulated by the Vermont Public Service Board

10

Natural Gas Transportation

Participation in two transportation

networks:

TQM: 50% participation

PNGTS: 38.3% participation

In % of 2003 consolidated results:

Revenues 4%

Gross Margin 11%

Assets 18%

11

Natural Gas Transportation TQM

System length:

572 km

2004 base rate of return:

9.56%

Capital Structure:

70% debt

30% common equity

Regulated by the National Energy Board

Regulated framework: cost of service and performance incentive mechanism

12

Natural Gas TransportationPNGTS

System length:

489 km

Capacity

500 million cubic feet per day

2004 base rate of return:

12.50%

Capital Structure:

60% debt

40% common equity

Regulated by the Federal Energy Regulatory Commission

13

Non-Regulated Activities

Participation in businesses operating in

various sectors, including: Water sector:

Aqua Data (100%) Aqua-Rehab (100%)

VDN Cable (20.57%)

CCUM (100%)

In % of 2003 consolidated results:

Revenues 3%

Gross Margin 4%

Assets 4%

Consolidated Financial Data

15

Highlights (As at September 30, 2003)

Annual Gas deliveries1 201.8 Bcf(Normalized)

System length 1 10,219 Km

Number of customers 1 188,716

Number of employees 1 1,250

Credit ratings 2-3 (S&P/DBRS) A / A

Stability ratings 3-4 (S&P/DBRS) SR-1/STA-1 (low)

Gaz Métro was included in the S&P/TSX Capped Income Trust

Index in May 2004(1) Québec and Vermont natural gas distribution.(2) Long-term debt.(3) Reiterated on February 25, 2004 by DBRS(4) Reiterated on July 13, 2004 by S&P

16

Gaz Métro enterprise value grew from $1.7 billion in 1993 to $3.6 billion in 2003

Enterprise Value

17

In millions of $, CAGR = compounded annual growth rate

Historical Financial Review

Funds from operations: before change in non-cash working capital

18

Historical Financial Review

PBR was put in place in October 2000

Projects in Development

20

Growth Opportunities

Cogeneration / Generation Take advantage of development of electricity and steam generation

plants using natural gas

TCE Energy (600 MW)

Cogeneration’s request for proposal to be issued by Hydro-Québec

Natural Gas Distribution Increase volumes in all markets

Landfill Gas Take part in development of landfill gas in Québec

Opportunities in energy sector infrastructure through development or acquisition

Five Strong Characteristics ofGaz Métro Units

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#1: Low Business Risk

97% of revenues regulated - ROE linked with long-term Canada bond

Exclusive distribution rights in Québec

Attractive performance incentive mechanism Upside potential of up to 375 basis points and limited downside risk

Pass-through costs: commodity, transportation and storage

Weather normalization

Market risk mitigated by: natural gas attributes, high conversion costs, need for natural gas in certain

industrial processes, take-or-pay contracts with large industrial customers

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#2: Very High Stability in Cash Distributions

Gaz Métro policy is to distribute between 95% and 100% of its earnings, keeping its free cash flow ($100 M per year) to support its business growth

24

#3: Long-Term Sustainable Growth

In a bull or bear market, Gaz Métro units create value

* From January 1995 to August 2004

Source: Bloomberg

25

Gaz Métro benefits from high quality credit ratings maintained over the years

#4: High Quality Credit Ratings

Stability rating SR-1 STA-1(low)

Long-term debt A A

26

#5: Growth Potential

Potential growth through densification of actual network and through generation and cogeneration projects

Low cost of capital put Gaz Métro in a competitive situation for investing

Conclusion

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Conclusion

Strong and stable businessStrong and stable business

Very high stability in cash distributionsVery high stability in cash distributions

Long-term sustainable growth Long-term sustainable growth

Low risk / low maintenance investmentLow risk / low maintenance investment

Strong and stable businessStrong and stable business

Very high stability in cash distributionsVery high stability in cash distributions

Long-term sustainable growth Long-term sustainable growth

Low risk / low maintenance investmentLow risk / low maintenance investment

GAZ MÉTRO OFFERS TO ITS UNITHOLDERS:GAZ MÉTRO OFFERS TO ITS UNITHOLDERS:

Appendix

30

Market Data

As of September 27, 2004

Ticker (TSX) GZM.UN

Market price $21.13

Units outstanding 114.5 M

Market capitalization $2,419.4 M

Public float $612.1 M

Enterprise Value $3,515.7 M

Earnings per unit 1 $1.39

Price/Earnings 15.2x

Annual cash distribution 2 $1.36

Actual distribution yield 6.4%

(1) As of September 30, 2003. (2) Annualized distribution.

Source: Gaz Métro, Bloomberg

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Mission and Objectives

Mission:

Transport and distribute natural gas in Québec and the northeastern portion of the United States

Pursue non-regulated activities in the energy, water and fibre optics fields

Objectives:

Financial: Provide stable and predictable return accompanied by growth in value over time

Commercial: Provide high-quality energy services at the lowest possible cost

32

Enbridge

Noverco Inc.

Natural gas transportationNatural gas distribution

Gaz de FranceCapital

Infragaz L.P.

GMi

GMLP

General Partner

Limited Partners

Public25.3%

100%

74.7%

GMi: Gaz Métro inc.GMLP: Gaz Métro Limited PartnershipCaisse: Caisse de dépôt et placement du QuébecBC investment Management Corporation: two trust members of the group hold respectively 9.44% (bcIMC (PPSAF) Investment trust No.1) and 1.67% (bcIMC (WCBAF-PPSAF) Investment Trust No.1) of the participation

Corporate Structure (As of July 23, 2004)

50.38% 32.06% 17.56%

52.78% 16.67% 11.11% 11.11%

Caisse(General Partner)

Solidarity Fund QFL

SNC Lavalin Inc.BC Investment Management Corporation

Non-regulated activities

Régime des rentes du mouvement

Desjardins

8.33%

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Fiscal Considerations

Eligible investment for RRSP purposes without any restrictions. Since January 1999, units of the Partnership

are no longer deemed to be foreign property.

Income is taxable as business income and partners have to file a Federal Income Tax Return as well as a Québec

Income Tax Return, regardless of their residency status.

Partners are allocated their share of the Partnership’s taxable income on a pro rata basis in accordance with distributions received. Income tax information slips (T5013 for federal purposes and Relevé 15 for Québec purposes) are prepared and issued by the brokers in accordance with a guide prepared by the Partnership. Also, the Partnership prepares

an explanatory guide for the preparation of corporate and individual Income Tax Returns. This guide is sent

with the tax information slips.

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Fiscal Considerations (cont'd)

The Partnership’s income for tax purposes differs from accounting income due to differences between

accounting principles and tax legislation. For the fiscal year ended September 30, 2003, income for tax purposes exceeded distributions by 10.2% for federal purposes and 9.7% for Québec purposes (based on financial statement figures).

Partners that hold their units in a non-taxable vehicle, such as a RRSP, are in no way affected by the difference between income for tax purposes and distributions received. Income earned in such a vehicle is taxable only when investments are withdrawn.

Under the terms of the Partnership Agreement, a partner who is a “non-resident” of Canada can be

required to sell his units to a person who is not a “non-resident” of Canada accorded to the Income Tax Act.