In this paper we consider the Liouville equation ∆u + λ 2 e u = 0 with Dirichlet boundary conditions in a two dimensional, doubly connected domain Ω. We show that there exists a simple, closed curve γ ⊂ Ω such that for a sequence λn → 0 and a sequence of solutions un it holds un log 1 λn → H, where H is a harmonic function in Ω \ γ and λ 2 n log 1 λn Ω e un dx → 8πc Ω , where c Ω is a constant depending on the conformal class of Ω only. 1991 Mathematics Subject Classification. 35J25, 35J20, 35B33, 35B40.