Release: LNG Limited: Padang LNG Project, Central Sulawesi, Indonesia

(12 December, 2006) - Liquefied Natural Gas Limited (LNG Ltd) advises that the publication ?Gas Matters Today Asia? has today reported that PT Pertamina (Persero) has selected Mitsubishi Corporation to join them in a proposed 2 million tonnes per annum (mtpa) liquefied natural gas (LNG) plant in Central Sulawesi. The plant is to be supplied gas from the Matindok gasfield, wholly owned by PT Pertamina, and the nearby Senoro gasfields, jointly owned by PT Pertainina and PT Medco E&P.

The report indicated that Mitsubishi Corporation would invest up to US$800 million in the LNG plant.

LNG Ltd understands that PT Pertamina?s decision still requires formal approvals, including the Pertamina Board of Commissioners and the Minister of State Enterprises, who has Government of Indonesia responsibility for PT Pertamina.

LNG Ltd?s Managing Director, Maurice Brand, said that ?the Company has received no formal notification of the selection of Mitsubishi Corporation. Furthermore, the Company considers that such a decision, if it is formally approved, would fail to acknowledge commitments given under an Exclusivity Agreement signed with PT Pertamina and PT Medco E&P in May 2005 (commitments fully complied with by LNG Ltd), in relation to the provision of gas to LNG Ltd from the Senoro gasfields, and was the result of a ?beauty parade? process which the Company considers requires appropriate review. The Company is considering its position on both these issues and any necessary action to protect shareholders? interests, including funds expended by the Company in good faith and based on commitments given by all parties under the Exclusivity Agreement.

?We find the reported outcome particularly surprising given the LNG Ltd consortium (with combined assets exceeding US $13 billion) provided:
? a firm capital cost of less than US$500 million,
? a firm LNG tolling fee,
? a firm (joint & several guaranteed) commissioning date in April 2009,
? a firm LNG offtake commitment from an S&P AA- rated established LNG buyer,
? proven funding capability through shareholder bridging finance and Standard Chartered Bank as financial adviser and debt arranger (also potential access to long term JBIC financing),
? a proven track record in project development and financing, proven LNG technology and EPC contractor (and high Indonesian content),
? no upstream gas investment condition,
? A PT Pertamina and PT Medco investment option in the LNG plant,
? a proposal to assist reduce LNG shipnient shortfalls from an existing Indonesian LNG project,
? a commitment to work with all parties to structure a longer term domestic LNG supply proposal for Indonesia and
? strong support from the local community and local, regional and Central governments.

The LNG Ltd consortium was able to provide such firm commitments given the advanced nature of its project including completion of owner?s front end engineering, site selection, environmental (AMDAL) approvals and all other key project fundamentals? said Mr Brand.

?Pursuant to the Collaborative Agreement signed with its major shareholder, Golar LNG, in June 2006, the Company is working on a number of other projects, in addition to the Qeshm LNG Plant. The Qeshm LNG Plant now has a planned LNG production capacity of up to 3.45 mtpa and is progressing smoothly following the signing of a Cooperition Agreement on the 7 November 2006. The substantial development and engineering work undertaken for die Padang LNG Project can be readily applied to all the Company?s proposed onshore based LNG Projects, resulting in the fast track monetization of existing proven gas resources,? said Mr Brand. (end of release)