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Kitimat LNG Terminal receives B.C. environmental approval

CALGARY, June 6, 2006 – Kitimat LNG Inc. of Calgary received a British Columbia environmental assessment certificate for its Kitimat LNG Terminal today, clearing a major hurdle on its path to construction and commercialization. Federal environment approval is pending, but the company is hopeful for a similar result from federal officials in the next few weeks.

“This is a big day for Kitimat LNG Terminal and a big day for the future of LNG in Canada and the Pacific Coast of North America,” says Kitimat LNG President Rosemary Boulton. “Environmental approval is a critical step in allowing us to move forward with construction this year, and a major step in allowing us to have fruitful discussions with supply partners in the Pacific Basin.”

The $500 million terminal and regasification facility has broad community and public support. Kitimat LNG Inc. recently entered into an historic partnership agreement with the Haisla First Nation that will see the Haisla participate in the project’s success. With regulatory approvals in place, the project will begin construction in the fall of 2006 with operations scheduled to commence in 2009.

“We believe we have the three pillars in place for a successful terminal project,” Boulton says. “We have an excellent location that offers shorter sailing times and lower shipping costs for suppliers. We have a community who supports the project and wants it in Kitimat. And we have the take-away pipe in place to enter gas into the North American system.”

North America is the largest natural gas market in the world and Canada’s Oil Sands Projects are the fastest growing industrial natural gas consumers in North America. KLNG Inc. believes demand for oil sands production and the natural gas to power these projects will continue to grow, making the project attractive to offshore suppliers.

Contact: Rosemary Boulton: 403-264-3330
Patti Schom-Moffatt :604-999-9058

About Kitimat LNG Terminal Kitimat LNG Terminal is a project of Kitimat LNG Inc., 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 receiving terminal near the Port of Kitimat in British Columbia. The terminal will be an environmentally sensitive facility that will receive and store LNG before it is regasified into a vapour and shipped, via existing pipelines, into the growing North American gas markets in B.C., Alberta and the Pacific Northwest.