Pacific Northern Gas Ltd. ("PNG") (TSX:PNG)(TSX:PNG.PR.A) believes that the
signing of a Heads of Agreement between Kitimat LNG Inc. and Mitsubishi
Corporation ("MC"), announced earlier today, is positive for the prospects of
PNG's investment in the $1.2 billion Kitimat to Summit Lake Pipeline Looping
Project ("KSL Project").


The Heads of Agreement sets forth the terms pursuant to which MC will contract
significant terminal capacity and acquire a minority equity stake in Kitimat
LNG's proposed liquefied natural gas ("LNG") export terminal, according to the
announcement by Kitimat LNG and MC. Pacific Trail Pipelines Limited Partnership
("PTP"), a partnership between Kitimat LNG's parent, Galveston LNG Inc., and
PNG, is developing the KSL Project to provide natural gas transportation service
for users of the export terminal to be built near Kitimat, B.C.


With MC's expected involvement as an anchor tenant in the Kitimat LNG export
terminal, PNG anticipates MC will also become an anchor tenant for the KSL
Project, requiring associated natural gas transportation service of
approximately 200 million cubic feet per day to the export terminal.


"We are encouraged that MC has put its support behind Kitimat LNG's export
terminal," said Roy Dyce, President and CEO of PNG. "This development
demonstrates the value of the Kitimat LNG export terminal and the KSL Project,
and is a significant step in opening new markets for natural gas from the
exciting new plays under development in northeast British Columbia."


PTP and Kitimat LNG received other non-binding expressions of interest from
parties interested in pipeline and terminal capacity. PTP and Kitimat LNG will
work with these parties to obtain binding commitments for additional capacity on
the KSL pipeline and at the LNG export terminal.


Construction of the KSL Project is subject to a number of conditions, including
the securing of contracts for use of PTP's transportation capacity, regulatory
approvals and financing for construction. PNG can give no assurances that these
conditions will be satisfied or that construction of the KSL Project by PTP will
proceed.


This press release may contain forward-looking statements relating to, among
other things, anticipated financial performance, business prospects, regulatory
developments, new services and market forces. All forward-looking statements are
based on management's beliefs and assumptions based on information available at
the time the assumption was made and on its experience and perception of
historical trends, current conditions and expected further developments as well
as other factors deemed appropriate in the circumstances. Management of PNG
believe the expectations reflected in such statements are reasonable but no
assurance is given that such expectations will be correct as forward-looking
information is subject to various risks and uncertainties that are known and
unknown, including those material risks discussed in PNG's MD&A and in its 2008
annual information form.


The Kitimat LNG and MC announcement is posted at www.kitimatlng.com.

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 (formerly Duke 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.
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