News Release
Nov. 28, 2002

PNG ANNOUNCES NEW LONG TERM FINANCING FACILITY

VANCOUVER, BRITISH COLUMBIA - Pacific Northern Gas Ltd. (PNG) announced today that it had received a commitment from RoyNat Inc., a wholly-owned subsidiary of The Bank of Nova Scotia, for a new $15 million long term loan facility, for general corporate purposes and the payment of dividends.

 

Under the terms of the committed lending facility, the loan will be repaid over a term of ten years.  The interest rate on the loan is at a floating rate, currently 6.293 percent. Completion of the financing is subject to certain conditions, including approval of the British Columbia Utilities Commission.

 

The Company suspended payment of common share dividends in 2000 to deal with liquidity issues due in part to the maturity of its 2002 Series Debentures, as well as high natural gas commodity costs in late 2000 and early 2001.  Since then, the Company has successfully reorganized to reduce capital and operating costs, has refinanced the Series 2002 Debentures, and executed a new seven year gas transportation services agreement with Methanex.

 

Roy Dyce, President and Chief Executive Officer of PNG stated, “We are extremely pleased with the terms of the financing. The financing, once completed, will improve the Company’s capitalization for regulatory purposes by more closely aligning actual common equity with that allowed by the regulator. It will also allow for the reinstatement of dividends.” 

 

The Board of Directors has determined that, subject to completion of the financing, a special dividend of approximately $2.75 per common share would be appropriate. A further meeting of the Board of Directors will be held after the completion of the financing in order to finalize and declare a dividend. The Company expects the financing to be completed on or before December 31, 2002.

 

Headquartered in Vancouver, British Columbia, Pacific Northern Gas Ltd. (TSE:PNG.A/ PNG.PR.A) owns and operates natural gas transmission and distribution systems.  The Company’s western transmission line extends from the Duke Energy Gas Transmission (formerly Westcoast Energy) 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, Pacific Northern’s subsidiary Pacific Northern Gas (N.E.) Ltd. provides gas distribution service in the Dawson Creek, Fort St. John and Tumbler Ridge areas.  www.pacificnortherngas.com.

 

Contact: Elizabeth A. Fletcher, C.A., Treasurer & Comptroller -- Investor Inquiries
Phone: 604/691-5684
24 Hour Phone: n/a
Email: efletche@duke-energy.com
Contact: Greg Weeres, Vice President, Operations & Engineering -- Media Contact
Phone: 604/691-5680
24 Hour Phone: n/a
Email: gweeres@duke-energy.com