Agreement on long-term LNG sales to India

29 September 2011

BG Group reaches agreement on long-term LNG sales to India

BG Group announced today it has signed a Heads of Agreement (HoA) with Gujarat State Petroleum Corporation (GSPC) for the long-term supply of up to 2.5 million tonnes per annum of Liquefied Natural Gas (LNG).

The HoA sets out the basis on which BG Group proposes to sell the LNG volumes to GSPC for up to a 20-year period beginning as early as 2014. The LNG volumes will be sourced from the Group's global supply portfolio.

BG Group and GSPC intend to complete negotiations and execute a fully-termed LNG sales and purchase agreement early next year.

BG Group Chief Executive Sir Frank Chapman said: "This is a landmark agreement for BG Group, establishing long-term LNG sales into one of the world's largest and fastest growing energy markets. We have been in the Indian gas market for more than 15 years and this agreement brings essential new supplies of natural gas to the country. It adds another important new dimension to the Group's expanding global LNG business."

-ends-

Notes to Editors:

BG Group plc (LSE: BG.L) is a world leader in natural gas, with a strategy focused on connecting competitively priced resources to specific, high-value markets. Active in more than 25 countries on five continents, BG Group has a broad portfolio of exploration and production, Liquefied Natural Gas (LNG) and transmission and distribution business interests. It combines a deep understanding of gas markets with a proven track record in finding and commercialising reserves. For further information visit: www.bg-group.com

Gujarat State Petroleum Corporation Limited, a Government of Gujarat company, is one of India's leading oil and gas exploration, development and production companies. GSPC has one of the largest gas trading businesses in the country and has a significant presence in gas transmission, gas distribution and power generation. The company is also developing an LNG terminal at Mundra in Gujarat. For further information visit: www.gspcgroup.com

Picture Desks:

For images of BG Group visit:  www.vismedia.co.uk (requires additional registration)

Contact:

Mark Todd: +44 (0) 118 929 3110 [email protected]

Neil Burrows: +44 (0) 118 929 2462 [email protected]

Out of Hours Media Mobile: +44 (0) 7917 185 707

Investor Relations: +44 (0) 118 929 3025 [email protected]

There are matters set out within this announcement that are forward-looking statements. Such statements are only predictions, and actual events or results may differ materially. For a discussion of important factors which could cause actual results to differ from these forward-looking statements, refer toBG Group's Annual Report and Accounts for the year ended 31 December 2010. BG Group does not undertake any obligation to update publicly, or revise, forward-looking statements, whether as a result of new information, future events or otherwise, except to the extent legally required.