KOGAS Signs MOU With Kitimat LNG

CALGARY, ALBERTA, Jun 01 (MARKET WIRE) --
Kitimat LNG Inc. announced today that it has signed a memorandum of
understanding (MOU) with Korea Gas Corporation (KOGAS), under which KOGAS
will acquire up to 40 per cent of Kitimat LNG's production and an option
to acquire an equity stake in Kitimat LNG's liquefied natural gas (LNG)
export terminal.

With the MOU, KOGAS, the world's largest LNG importer, plans to purchase
two million tons per annum (mtpa) of LNG from the proposed terminal for
20 years. The total purchase value would be more than US$20 billion over
20 years of operation.

"We welcome KOGAS's participation in our project," said Rosemary Boulton,
President of Kitimat LNG. "The addition of a strong international company
and leading LNG buyer such as KOGAS marks a significant milestone in the
development of the Kitimat LNG terminal."

"Our agreement with Kitimat LNG is key to our ongoing efforts to ensure a
secure supply of natural gas for Korea in the long-term," said Kangsoo
Choo, CEO of KOGAS. "We are pleased to add natural gas from Canada to our
portfolio and tap into the country's growing sources of supply."

Kitimat LNG is progressing with discussions with other potential terminal
users and investors for terminal capacity, off-take from the terminal and
equity in the 5.0 mtpa project in Kitimat, B.C.

"KOGAS's involvement reinforces that our project is supported by strong
business fundamentals and trends in the global and Western Canadian
natural gas markets," added Boulton. "We look forward to working with
KOGAS in moving the LNG terminal ahead and providing the economic
benefits associated with the project to Canada and Korea."

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 Asian markets.

About Korea Gas Corporation

Korea Gas Corporation (www.kogas.or.kr) was incorporated by the Korean
government in 1983. Since its founding, it has grown to become the
world's largest LNG importer. As the nation's sole LNG provider, the
Corporation is fully committed to providing clean, safe and convenient
energy to the people of Korea. In keeping with this mission, KOGAS
operates three LNG terminals and a nationwide pipeline network spanning
over 27,200km in order to ensure stable supply for the nation. KOGAS
currently imports 26 million tons of LNG per year.

Contacts:
Karyo Edelman (on behalf of Kitimat LNG)
Ian Noble
(604) 623-3007 or Cell: (604) 809-9650
www.kitimatlng.com

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