Pacific Northern Gas Ltd.
TSX : PNG
TSX : PNG.PR.A

Pacific Northern Gas Ltd.

December 16, 2008 19:22 ET

LNG Partners Does Not Make Option Fee Payment to PNG for Utilization of Excess Pipeline Capacity

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Dec. 16, 2008) - On September 25, 2008 Pacific Northern Gas Ltd. ("PNG") (TSX:PNG)(TSX:PNG.PR.A) filed an application with the B.C. Utilities Commission ("Commission") for approval to provide LNG Partners, LLC ("LNG Partners") with an extendable option to contract for a minimum 75 MMcf per day of firm gas transportation service using existing capacity on PNG's Western B.C. pipeline system. Commission approval was received on November 27, 2008, triggering the requirement for LNG Partners to pay a $1.5 million non-refundable option fee to PNG for an exclusive 6 month option to contract firm gas transportation service. Payment of the option fee was due by December 15, 2008 and PNG has yet to receive payment from LNG Partners.

Roy Dyce, President and CEO of PNG, said, "Discussions are currently ongoing with LNG Partners to secure payment of the option fee."

PNG is reviewing its alternatives and can provide no assurances that LNG Partners will make payment of the option fee.

Headquartered in Vancouver, British Columbia, Pacific Northern Gas Ltd. (TSX:PNG)(TSX:PNG.PR.A) owns and operates natural gas transmission and distribution systems. The Company's western transmission line extends from the Spectra Energy gas transmission system north of Prince George to tidewater at Kitimat and Prince Rupert, and provides service to 12 communities and a number of industrial facilities. In the northeast, Pacific Northern's subsidiary Pacific Northern Gas (N.E.) Ltd. provides gas distribution service in the Dawson Creek, Fort St. John and Tumbler Ridge areas. Further information is available on the Company's website at: www.png.ca.

Contact Information

  • Pacific Northern Gas Ltd. - Investor Inquiries
    Kevin Teitge
    Director, Corporate Development
    (604) 691-5689
    or
    Pacific Northern Gas Ltd. - Media Inquiries
    Greg Weeres P.Eng.
    Vice President Operations & Engineering
    (604) 691-5680
    Website: www.png.ca