Kitimat LNG Inc.

Kitimat LNG Inc.
gas Natural

gas Natural

July 06, 2009 09:03 ET

Kitimat LNG and GAS NATURAL Sign MOU

Leading European LNG operator agrees to purchase production from Canadian terminal for a 20-year period

CALGARY, ALBERTA--(Marketwire - 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 acquire up to 30 per cent of production from Kitimat LNG's proposed liquefied 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 acquire a strategic position in the Pacific basin.

"This is a very exciting time for Kitimat LNG," said Rosemary Boulton, President 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."

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. The facility will receive natural gas via pipeline from Western Canada. At the terminal, the natural gas will be cooled and liquefied in preparation for export via ship to growing global markets, including Asia.

About GAS NATURAL (www.gasnatural.com)

GAS NATURAL is an energy multi-national leader in the gas sector in Spain and Latin America. The company's main activities are the supply, distribution and sale of natural gas in Spain, Latin America, Italy and France, where it has 11 million customers, and it is also a major operator in the electricity generation and sales business in Spain, and in the sale of other energy products and services.

Currently, GAS NATURAL is in a merger process with Union Fenosa. The governing bodies of both companies recently approved the merger, which will bring about the creation of the largest integrated gas and power company in Spain and one of the top ten European utility companies, with a presence in 23 countries around the world. The new group will have over 20 million customers - 8.9 million in Spain and 11.3 million in other countries - and approximately 17,000 MW of installed power generating capacity, of which 5,200 MW will be in combined cycle gas turbines in Spain, and 4,074 MW in combined cycle gas turbines abroad.

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