Kitimat LNG Inc.

Kitimat LNG Inc.

July 13, 2009 08:25 ET

Kitimat LNG Signs MOU with EOG Resources Canada for Natural Gas Supply

CALGARY, ALBERTA--(Marketwire - July 13, 2009) - Kitimat LNG Inc. announced today that it has signed a memorandum of understanding (MOU) with EOG Resources Canada (EOG) to supply natural gas to Kitimat LNG's proposed liquefied natural gas (LNG) export terminal in Kitimat, B.C.

Pursuant to the MOU, Kitimat LNG and EOG are proceeding to negotiate a definitive agreement under which EOG would supply specific quantities of the LNG facility's 700 million cubic feet per day of natural gas feedstock.

"EOG's participation in our project reinforces the fact that business and natural gas fundamentals support our LNG terminal," said Rosemary Boulton, President of Kitimat LNG. "Kitimat LNG presents a compelling opportunity for producers to leverage growing natural gas reserves in Western Canada and sell into significant new international markets such as Asia."

EOG is the first producer to sign an MOU with Kitimat LNG. Kitimat LNG has also signed MOUs with leading LNG companies such as Korea Gas Corporation (KOGAS) and GAS NATURAL for the purchase of LNG produced at the terminal.

"We look forward to working with EOG and our other partners to move the LNG terminal ahead and provide the substantial and ongoing economic benefits associated with the project to B.C.," added Boulton.

Kitimat LNG is in discussions with potential terminal users, LNG buyers and other natural gas producers for the five million tonnes per annum project.

About Kitimat LNG Terminal - Kitimat LNG Terminal is a project of Kitimat LNG Inc. (www.kitimatlng.com), a Calgary-based private company focused on the development of liquefied natural gas (LNG) and related facilities in North America. Kitimat LNG Terminal is proposing to construct, own and operate a liquefied natural gas terminal near the Port of Kitimat in British Columbia. At the terminal, the natural gas will be cooled and liquefied in preparation for export via ship to growing global markets.

About EOG - EOG Resources, Inc. (www.eogresources.com), is one of the largest independent (non-integrated) oil and natural gas companies in the United States with proved reserves in the United States, Canada, Trinidad, the United Kingdom North Sea and China. EOG Resources, Inc. is listed on the New York Stock Exchange and is traded under the ticker symbol "EOG."

Contact Information

  • Karyo Edelman (on behalf of Kitimat LNG)
    Ian Noble
    604-623-3007 (office), 604-809-9650 (cell)
    www.kitimatlng.com