Pacific Northern Gas Ltd. (TSX:PNG)(TSX:PNG.PR.A) - 

Today, Apache Corporation announced that its Apache Canada Ltd. subsidiary
("Apache") has agreed to acquire 51 percent of Kitimat LNG Inc.'s planned
liquefied natural gas export terminal in British Columbia ("Terminal"). Apache
will also acquire a 25.5 percent interest in Pacific Trail Pipelines Limited
Partnership ("PTP") from Galveston LNG Inc., the parent company of Kitimat LNG.
PTP is developing the $1.2 billion Kitimat to Summit Lake Pipeline Looping
Project ("KSL Project") to transport natural gas supply to the Terminal.
Galveston LNG will retain a 49 percent interest in the Terminal and a 24.5
percent interest in PTP. Pacific Northern Gas Ltd. holds the remaining 50
percent interest in PTP. This investment by Apache significantly supports the
prospects for the development of the KSL Project by PTP.


"We are very pleased to have Apache's sponsorship of the LNG export project and
to welcome Apache to the PTP partnership," said Roy Dyce, President and CEO of
PNG. "Our focus will now be to complete agreements with Apache and other users
of the KSL Project prior to filing an application for a Certificate of Public
Convenience and Necessity with the British Columbia Utilities Commission in
2010."


The KSL Project has received both the federal and provincial governments'
environmental assessment approvals and has created an innovative arrangement to
partner with the First Nations along the pipeline route. In April 2009 the
Province of British Columbia announced an agreement with the First Nations
located along the pipeline route to assist them in securing a direct ownership
interest in PTP.


Subject to a number of conditions, construction of the KSL Project by PTP is
planned to commence in 2012 for completion in 2014 when the Terminal is planned
to begin operation. Conditions to construction include the securing of contracts
for use of PTP's transportation capacity, financing for construction of the KSL
Project, and additional regulatory approvals for the KSL Project such as a
Certificate of Public Convenience and Necessity from the British Columbia
Utilities Commission and other permits from the British Columbia Oil and Gas
Commission. PTP has not signed any agreements with respect to utilization of its
planned gas transportation capacity and can give no assurances that this or
other conditions will be satisfied or that construction of the KSL Project by
PTP will proceed.


This press release contains forward-looking statements relating to the
development and construction of the Terminal and the KSL Project. 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 2009 annual information form.


The Apache Corporation announcement noted above is posted at www.apachecorp.com
and at www.kitimatlng.com.


Headquartered in Vancouver, British Columbia, PNG (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 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, PNG'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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