KLNG Announcement

KLNG Announcement

July 9, 2009 - 2:34pm

Kitimat LNG & GAS NATURAL sign MOU

Calgary, July 6, 2009-Kitimat LNG Inc. and GAS NATURAL announced today that they have signed a memorandum of understanding (MOU) under which GAS NATURAL intends to aquire up to 30 percent of production from Kitimat LNG's proposed liquified natural gas (LNG) export terminal

The MOU also provides GAS NATURAL with an option to purchase an equity stake in the Kitimat LNG Terminal.

GAS NATURAL is the world's second largest LNG operator through Stream, its 50% joint venture with Repsol. With the MOU with Kitimat LNG, GAS NATURAL plans to purchase up to 1.6 million tons per annum (mtpa) of LNG from the terminal for 20 years. In addition to its leading presence in the Atlantic and Mediterranean LNG markets, GAS NATURAL could aquire a strategic position in the Pacific basin.

"This is very exciting time for Kitimat LNG," said Rosemary Boulton, Presendent of Kitimat LNG. "With the GAS NATURAL agreement and our MOUs with other LNG leaders such as Korea Gas Corporation (KOGAS), Kitimat LNG is in a strong position to obtain further interest in our terminal and move our project forward."

"GAS NATURAL's agreement with Kitimat LNG is a further step in the group's strategy of LNG supply diversification," said a GAS NATURAL official. "GAS NATURAL's LNG portfolio already provides volumes from North and West Africa, South America and Middle East."

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