Agreement signed for sale of TGGT

17 October 2013

Agreement signed for sale of TGGT

BG Group today announced that it has signed a definitive agreement with Azure Midstream Energy, LP (Azure) for the sale of its entire holding in TGGT - a joint venture midstream company operating in east Texas and north Louisiana, USA. BG Group will receive a net cash consideration of $231 million along with a $17 million stake in Azure, equating to an approximate 4% equity holding, for its entire 50% equity holding in TGGT.

BG Group's sale of its interests in TGGT is aligned with a key strategic commitment to more actively manage its portfolio as the company focuses on its core strengths of exploration and production and LNG.

Completion of the deal is expected by the end of the year, subject to relevant regulatory approval and other customary conditions. 

TGGT is a 50/50 BG Group and EXCO Resources joint venture company which owns and operates natural gas gathering and treating assets in three main systems focused on production from the Haynesville, Bossier and Cotton Valley shale gas formations across east Texas and north Louisiana.

EXCO Resources will sell its entire 50% equity holding in TGGT to Azure, under the same terms, in the same transaction. In aggregate, including amounts required to settle TGGT debt and credit balances and other closing adjustments, the total consideration for the sale of TGGT to Azure by BG Group and EXCO Resources is approximately $910 million.

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Notes to Editors:

BG Group plc (LSE: BG.L) is a world leader in natural gas, with a broad portfolio of business interests focused on exploration and production and liquefied natural gas. Active in more than 20 countries on five continents, BG Group 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

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 to BG Group's Annual Report and Accounts for the year ended 31 December 2012. 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.

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