Pacific Trail Pipelines Seeks Expressions of Interest for Capacity in Proposed Natural Gas Pipeline

KSL Project would supply Kitimat LNG export terminal with natural gas from Western Canada

• Press Release
• Source: Pacific Trail Pipelines Limited Partnership
• On 11:30 am EST, Tuesday December 2, 2008

VANCOUVER, BRITISH COLUMBIA--(MARKET WIRE)--Dec 2, 2008 -- Pacific Trail Pipelines Limited Partnership (PTP) announced today that it is requesting formal expressions of interest from potential users for its proposed $1.2 billion, 463-kilometre Kitimat to Summit Lake Looping Project (KSL Project).

The pipeline project will provide natural gas transmission service from an interconnect with Spectra Energy Transmission near Summit Lake, British Columbia to an interconnect with Kitimat LNG Inc.'s proposed liquefied natural gas export terminal at Bish Cove, British Columbia.

The KSL Project has been under development since 2005. In June 2008, PTP was granted an Environmental Assessment Certificate for the KSL Project by the Province of British Columbia. PTP expects to receive approvals under the Canadian Environmental Assessment Act prior to the end of the first quarter of 2009.

Interested parties now have the opportunity to submit bids for a portion of PTP's proposed pipeline capacity in order to transport their natural gas to the Kitimat LNG terminal for liquefaction and shipment to markets in the Pacific Rim.

"The KSL Project provides a compelling opportunity for energy companies interested in taking advantage of the natural gas price gap between the lower prices in North America and the higher prices in Asia," said Roy Dyce, CEO, PTP. "Kitimat LNG is currently seeking expressions of interest for capacity at its terminal and companies interested in that capacity will be able to transport their gas to the terminal using our pipeline."

A letter requesting expressions of interest in the PTP project is posted on the PTP website (www.pacifictrailpipelines.com). It contains additional information on the project, processes and expected timelines. PTP will accept expressions of interest until December 22, 2008.

If sufficient interest is shown in the PTP pipeline, the company will begin the process to obtain the required additional regulatory approvals necessary to commence construction. Required approvals include those from the British Columbia Utilities Commission and the British Columbia Oil and Gas Commission.

Information on the Kitimat LNG terminal and an information document for the company's request for expressions of interest can be found on the Kitimat LNG website (www.kitimatlng.com).

About Pacific Trail Pipelines (PTP)

Pacific Trail Pipelines (PTP) is a partnership between Pacific Northern Gas Ltd. (www.png.ca) and Galveston LNG Inc. (www.galvestonlng.com).

Pacific Northern Gas, a publicly traded company (Toronto:PNG.TO - News), has owned and operated a natural gas transmission pipeline extending from Summit Lake to Kitimat and Prince Rupert for 40 years. PNG also provides natural gas distribution services in numerous communities along its transmission system corridor and natural gas distribution services in various communities in northeast British Columbia through its subsidiary Pacific Northern Gas (N.E.) Ltd.

Galveston LNG is a Calgary-based private company focused on the development of liquefied natural gas (LNG) and related facilities and is the parent company of Kitimat LNG Inc.

     Contacts:
     Pacific Trail Pipelines Limited Partnership
     Ian Noble
     Office: (604) 623-3007 or Cell: (604) 809-9650
     Website: http://www.pacifictrailpipelines.com