Release: PT LNG Energi Utama receives Indonesian foreign investment approval

(West Perth, December 14,2005) Liquefied Natural gas Limited today announced that its 50% owned company, PT LNG Energi Utama, has received foreign capital investment approval from Indonesia's Investment Coordinating Board (BKPM). PT LNG Energi Utama has been established to own and operate the planned 850,000 tonnes per annum liquefied natural gas production project in Central Sulawesi, Indonesia (Senoro LNG Project).

The Company's Senoro LNG Project partner, PT Maleo Energi Utama, is a private Indonesian company with extensive business interests in Central Sulawesi, including oil and gas and civil construction activities. The PT Maleo Energi Utama Group brings extensive engineering experience and local knowledge to the project, together with access to suitable land for development of the LNG plant and LNG shiploading facilities.

The approval by BKPM follows a series of important Indonesian procedural requirements, including a Minister's Decree authorising the Director General Oil and Gas to issue a Foreign Capital Investment License Recommendation letter, followed by the issue of the Recommendation Letter to BKPM.

"This is a major milestone for the Company and introduces a unique ownership structure with the legal separation of the upstream activities, being the gasfield development, and downstream investment by the Company, being the ownership and operation of the LNG plant," said Mr Maurice Brand, Managing Director of Liquefied Natural Gas Ltd.

"PT LNG Energi Utama and the natural gas sellers are discussing the key terms of a natural gas supply Heads of Agreement which will require the approval of BPMIGAS, the Indonesian upstream gas regulator. The Heads of Agreement, once signed, will pave the way for the parties to progress to a definitive gas sale and purchase agreement, which will also require the approval of BPMIGAS."

The Company is working to achieve financial close in the first half of 2006 with LNG production and deliveries targeted to commence in the first quarter 2008.(end of release)