12th Feb 2007 10:36
BG GROUP plc12 February 2007 Media Information 12 February 2007 BG Group and Nigeria LNG (NLNG) enter agreement for Liquefied Natural Gas (LNG) supply BG Group plc today announced that it has signed a Sale and Purchase Agreementwith NLNG for the acquisition of 2.25 million tonnes per annum (mtpa) of LNG fora 20 year term from the planned Train 7 project in Finima, Bonny Island, Nigeria. Cargoes will be delivered on an ex-ship basis to BG Group's North Americanmarketing business at Lake Charles, Louisiana. Martin Houston, BG Executive Vice President and Managing Director, North America, Caribbean and Global LNG, said: "This agreement with NLNG adds to our existing supply arrangements throughTrains 4 and 5 which came into effect last year. It enhances the profitablelong-term growth of BG's LNG supply portfolio and reflects the strength of BG'scompetitive position in the Atlantic Basin." There are matters discussed in this media information 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 the forward looking statements, refer to the Company's annual report and accounts for the year ended 31 December 2005. TheCompany 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. Notes to Editors: BG Group plc is a global natural gas business. Active on five continents in 25countries, it operates four business segments - Exploration and Production, LNG,Transmission and Distribution and Power. NLNG Train 7 is planned as an 8.4 mtpa facility. The shareholders in NLNG areNigerian National Petroleum Corporation (NNPC) (49%), Shell Gas B.V., (25.6%)Total LNG Nigeria Limited (15%) and ENI International (N.A.) N.V. S.a'r.l.(10.4%). In January 2006, BG entered into a Memorandum of Understanding (MoU) withNigeria's Brass LNG for the acquisition of LNG with initial deliveries expectedto start during 2011. Final volumes will be confirmed on completion of the Saleand Purchase Agreement which is expected in 2007. In February 2006, BG signed a Joint Venture Project Development Agreement for aliquefaction plant at Olokola (OKLNG) on the south-western coast of Nigeria. Theproposed project will comprise four LNG trains of approximately 5.5 mtpa each,with the development envisaged in two phases of 11 mtpa capacity. BG Group has a13.5% share in the project and the remaining partners are - NNPC (49.5%, ChevronOKLNG Holdings Limited (18.5%) and Shell Gas and Power developments B.V.(18.5%). In January 2006, BG Group (along with our partners Sahara Energy and SevenEnergy) signed a Production Sharing Contract with NNPC with respect to Block 332offshore Nigeria. BG holds a 45% interest in and operatorship of this block.Block 332 is located in deep water (100 - 1,000m) offshore western Niger Delta,approximately 100km south-east of the commercial capital Lagos and lies betweenlatitudes 5 degrees 50'N and 6 degrees 20'N. In the USA, BG LNG Services LLC, (BGLS) holds, through 2028, 100% of the firmcapacity rights at North America's largest operating LNG importation terminal,Lake Charles in Louisiana. This facility has storage capacity of 9 billion cubicfeet (bcf) and sustained send out capacity of 1.8 billion cubic feet per day(bcf/d). Additionally, BGLS holds, through 2027, firm regasification rights of 446million standard cubic feet per day (mmscf/d) at the Elba Island LNG terminalnear Savannah, Georgia. Expansion work is expected to increase its throughputcapacity to 1.17 bcf/d from 2012. BG has long-term purchase agreements in place with Equatorial Guinea LNG Train1, S.A. for the supply of 3.4 mtpa for 17 years from 2007; with Nigeria LNG Ltd,for the supply of 2.3 mtpa for 20 years which began in January 2006; withEgyptian LNG Train 2 for the supply of 3.6 mtpa for 20 years and with AtlanticLNG Train 4 for the supply of BG Group's liquefaction capacity (28.89%) in the5.2mtpa facility under long-term contract. BG is also a shareholder in EgyptianLNG Train 1 which has an output of 3.6 mtpa - all pre-sold to Gaz de France. Athird Egyptian LNG train is under consideration. ALNG Train 1, which came into operation in April 1999, has 3.1 mpta capacity (BGGroup - 26% shareholder). Trains 2 and 3, which became operational in August2002 and April 2003 respectively, each have 3.4 mtpa capacity (BG Group - 32.5%shareholder). Train 4 (BG Group - 28.89% shareholder), is a fully integratedproject for BG Group, involving the production and liquefaction of gas inTrinidad & Tobago, the shipping of LNG to Lake Charles and the subsequentregasification for onward sale into the US market. For more info on Atlantic LNG Company - www.atlanticlng.com Enquiries: Communications +44 (0) 118 929 2462Out of hours media mobile: +44 (0) 7917 185707 Investor Relations Chris Lloyd/Helen Parris/ Siobhan Andrews +44 (0) 118 929 3025 Website: www.bg-group.com This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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