One of Repsol's Ten Key Growth Projects

NEW YORK, June 18 /PRNewswire-FirstCall/ --

• Repsol (NYSE: REP) enters the U.S. and Canadian natural gas markets with significant supply capabilities for local distribution companies, power generators and other retailers.

• Repsol could supply as much as 20 percent of the natural gas market in the northeast U.S. from Canaport LNG and other gas holdings.

• The LNG facility has a firm sendout capacity of 1 Bcf/day, enough to heat 5 million homes.

• First LNG receiving and re-gas terminal built on the east coast of North America in 30 years. First LNG receiving and re-gas terminal in Canada.

• Repsol will provide competitive and stable gas supplies to the northeast of North America via the Canaport LNG Terminal.

• Repsol partnered with Irving Oil Limited, owner of Canada's largest oil refiner, in the construction and operation of the Canaport LNG receiving and re-gas terminal.

• Repsol's joint venture with Gas Natural is the world's fourth-largest shipper and marketer of LNG.

The Canaport LNG terminal in Canada will receive its first shipment of liquefied natural gas (LNG) early next week, marking the entry of Repsol (NYSE: REP) into the North American natural gas market. The terminal is the first of its kind to be built on the east coast of North America in 30 years and the first ever to be built in Canada.

The 1 Bcf per day facility, enough to heat 5 million homes, will provide supplies of natural gas to homes, businesses and industry in Canada and the northeast U.S. The start of operations there will help consolidate Repsol's joint venture with Gas Natural as the world's fourth-largest shipper and marketer of LNG.

In Canada, working with Irving Oil, Repsol has supply contracts with a number of other gas sources that will complement the operations at the Canaport LNG Terminal, located in Saint John, New Brunswick, and ensure that their clients have access to competitively priced and reliable natural gas supplies delivered under flexible contractual arrangements.

The Canaport LNG Terminal, along with Repsol's other natural gas assets, will be capable of meeting about 20 percent of the natural gas demand in New York and New England.

"The Canaport LNG Terminal commissioning demonstrates Repsol's commitment to the LNG business and natural gas as the fuel of choice, for today and for the future," said Antonio Brufau, Chairman of Repsol. "All of our LNG projects demonstrate Repsol's ability to construct, operate and successfully commercialize complex energy projects."

"We're excited and proud to see the Canaport terminal come online as part of our commitment to supply the northeast region of North America," said Benjamin Palomo, Executive Director of Repsol's LNG Division. "Canaport secures our position as a major gas supplier to this growing market."

Regasified LNG from the Canaport LNG Terminal will flow through the Brunswick Pipeline, a 90-mile pipeline connecting the terminal to the existing Maritimes & Northeast Pipeline (M&NP) at the Canada/USA border. Repsol has contracted all of the firm capacity in the Brunswick Pipeline.

The Canaport LNG Terminal is one of Repsol's 10 key growth projects outlined in its 2008-2012 Strategic Plan. Repsol is also participating in the construction of an LNG liquefaction plant in Peru, wherefrom the company will purchase 100% of the LNG produced beginning in 2010.

Repsol (http://repsol.com/es_en/) is Spain's largest oil company, and the sixth largest in Europe. Repsol is present in more than 30 countries where it has interests from exploration and production through shipping, refining, LNG, LPG and retail sales.

Repsol Energy North America Corporation and Repsol Energy Canada Ltd. are the entities that will engage in the sale of the regasified LNG in the U.S. and Canada, respectively.

Canaport LNG technical details:

Capacity: 1 Bcf/day firm capability

Storage Capacity: 9.9 Bcf natural gas equivalent

Ownership Structure: 75% Repsol / 25% Irving Oil

Contracted Capacity: 100% to Repsol Energy Canada Ltd.

    Contacts:
    Mary Usovicz                    Kristian Rix
    Repsol Energy North America     Repsol
    Director External Affairs       Manager of International & Financial Media
    +1 978-741-0053 office          +34 91 753 6314 office
    +1 978-317-3434 cell            +34 650 496 488 cell
    musoviczl@repsol.com            rix.kristian@repsol.com

    Caroline Dickson
    RF|Binder Partners
    212 994 7560
    caroline.dickson@rfbinder.com

SOURCE Repsol