Sonangol Purchased Equity Interest in Gulf LNG Energy, LLC

Sonangol Purchased Equity Interest in Gulf LNG Energy, LLC

Gulf LNG Energy, LLC, of Houston, Texas (Gulf LNG) and Sociedade Nacional De Combustiveis De Angola, Sonangol, jointly announced today that Sonangol has purchased a significant equity interest in Gulf LNG Energy, LLC.

Previously, Gulf LNG executed an agreement with the Jackson County Port Authority and Jackson County Mississippi, (collectively, Port of Pascagoula) regarding the use of land in Bayou Casotte that is controlled by the Port of Pascagoula for the purpose of siting an LNG import and regasification terminal (Terminal).

Gulf LNG has engaged a team of experienced engineers and environmental consultants to complete final design work and is now moving forward with regulatory authorities in order to obtain all necessary permits. The Federal Energy Regulatory Commission is acting as the lead agency for permitting the facility.

Gulf LNG also announced today that Technip USA has been awarded the contract to perform the front end engineering and design for the terminal. Gulf LNG anticipates the Pascagoula receiving terminal will be ready to receive LNG mid 2009.

Sonangol is an Angolan company that manages the hydrocarbon resources of Angola. Sonangol is a fully integrated company with over 6,000 employees that is involved in upstream production, downstream activities including refining, and transportation. Sonangol is currently responsible for managing Angola’s oil production which is currently in excess of 1.1 million barrels per day and is expected to reach 2 million barrels per day within several years. Sonangol has substantial natural gas resources and has announced that it is currently in the process of performing the front end engineering and design work for a liquefaction facility in Angola to be built in conjunction with Chevron Texaco, British Petroleum, TOTAL, and Exxon Mobil under the name of ALNG. ALNG is anticipating constructing initially a 5 million metric ton facility in the Northern part of Angola that will be ready to start production in late 2009.

Manuel Vicente, President of Sonangol, stated that Sonangol, as part of its long term vision, plans to make strategic downstream investments in projects that complement Angolan hydrocarbon resources. Mr. Vicente went on to say that the Gulf LNG terminal fits ideally into Sonangol’s long term investment criteria for global expansion.

Joseph Peacock, the President of Gulf LNG, commented that Gulf LNG is very pleased to have as a partner an organization with the financial resources and professional reputation of Sonangol. Mr. Peacock went on to say that Sonangol is widely recognized as one of the most progressive and well managed integrated oil companies in the world.

Gulf LNG, having performed extensive due diligence, has concluded that the Pascagoula site is the optimal site on the Gulf Coast for an LNG terminal. In addition to being remotely located, the site affords direct access to four major gas pipelines serving the Northeast and three gas pipelines serving Florida and theSoutheast. The strategic location of the Pascagoula site, east of the Henry Hub, offers potential customers in the Eastern US the possibility of meaningful transportation savings. From a marine standpoint, the site is excellent in that it is easily accessible from the Bayou Casotte Ship Channel which is 42 feet deep and 350 feet wide.

Gulf LNG's terminal is intended to provide an abundant and much needed long-term source of natural gas supply to consumers and industrial users in Mississippi and the entire south. In addition, it will be a major asset to local governments in attracting desirable new industry to the area dependent upon access to clean burning, efficient, natural gas.

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