King & Spalding Advises on Significant Non-Recourse Project Financing for Gulf LNG Energy

PASCAGOULA, MS--(Marketwire - February 12, 2008) - King & Spalding, a leading international law firm, advised Gulf LNG Energy, LLC on its non-recourse project financing of a liquefied natural gas (LNG) regasification terminal known as the Gulf LNG Clear Energy Project. Total financing for the project will exceed $800 million.

This is the first non-recourse project financing for an LNG terminal to occur in the U.S. since early 2005. Its completion brings to a close the last and one of the most challenging phases of the project and clears the way for construction to begin. Gulf LNG Energy expects to break ground on the new facility in February 2008.

"The fact that we were able to obtain non-recourse financing of this project on behalf of our client is something we're particularly proud of," said Dan Rogers, a lead attorney on the project and a partner in the firm's Houston office. "Given the current credit crunch, the willingness of lenders to rely entirely on the revenues of the project to repay loans speaks volumes about their belief in this project's success."

King & Spalding previously represented Gulf LNG on an engineering, procurement and construction (EPC) agreement, on two terminal use agreements (TUAs), and in obtaining the required regulatory permits for the construction, ownership and operation of the Gulf LNG Clean Energy Project that the firm says will reduce the project's operating costs.

When completed, the project will have a peak natural gas throughput of approximately 1.5 billion standard cubic feet of natural gas per day into the southeastern United States natural gas market and an LNG storage capacity of 320,000 cubic meters -- the equivalent of 6.6 billion standard cubic feet of natural gas.

The lead partners representing Gulf LNG Energy on this project's financing were Dan Rogers of the firm's Houston office and Charlotte partner Todd Holleman. Partners Scott Greer and Ned Crady, Counsels Bill Krenz, Sandy Cofer, Angus McFadden and Gene Ann Herrin and associates Shaw Ottis, Scott Thomasson and Glynn Walker also advised on the matter.

King & Spalding is a leader in the international and domestic liquefied natural gas industries and has been described by Chambers Global as "probably the premier firm for broad-based LNG support in the USA." In the past five years alone, the firm has handled the closing transactions for three of the five domestic new-construction LNG terminals currently being built in the United States and half of the expansions to existing U.S. LNG terminals. These transactions have an aggregate value of more than $4.1 billion.

About King & Spalding

King & Spalding is an international law firm with more than 800 lawyers in Atlanta, Charlotte, Dubai, Frankfurt, Houston, London, New York, Riyadh (affiliated office) and Washington, D.C. The firm represents half of the Fortune 100 and in a Corporate Counsel survey in September 2007 was among the top firms representing Fortune 250 companies. For additional information, visit www.kslaw.com.

Contact Information: Contact: Matt Hyams King & Spalding Ph: (212) 827-4057