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Kitimat LNG receives final regulatory approval

Calgary, August 22, 2006- Kitimat LNG Inc. has cleared its final regulatory hurdle by receiving a federal environmental permit to proceed with development of its proposed Kitimat LNG terminal.

The federal approval allows Kitimat LNG to build the first LNG terminal on the west coast of Canada and the US , says Rosemary Boulton, President of Kitimat LNG.

“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 that supports the project and wants it in Kitimat. And we have the take-away pipe to move 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.

“Demand for oil sands production and the natural gas to power these projects will continue to grow, making the project attractive to offshore suppliers,” says Boulton

The Honourable Rona Ambrose, Minister of the Environment and Minister responsible for the Canadian Environmental Assessment Agency, announced the Kitimat LNG terminal project is not likely to cause significant adverse environmental effects. The Minister based her environmental assessment decision on a comprehensive study report; public input; and the implementation of mitigation measures and a follow-up program.

The Minister’s announcement followed a similar favourable decision made by the province in June. With approval from both the Canadian and British Columbian environmental assessment agencies, and a partnership agreement with the Haisla First Nation, Kitimat LNG Terminal has met all approval obligations.

Site preparation for the $500 million terminal and regasification facility will begin in the late fall of 2006, with operations scheduled to commence in 2009.

For more information, or to arrange interviews, contact Patti Schom-Moffatt, Director of Communications and Consultation, Kitimat LNG at 250.279.0224 or 604.999.9058.

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