24th Jan 2005 11:06
BG GROUP plc24 January 2005 Media Information 24 January 2005 BG Group and Enel sign Brindisi LNG Sale and Purchase Agreement BG Group has today announced the signing of a Sale and Purchase Agreement (SPA)for the supply of 3.2 billion cubic metres per annum (bcma), or 2.4 milliontonnes per annum (mtpa), of LNG to Enel, beginning in 2008, at the Brindisi LNGterminal in southern Italy. This supply will initially be sourced from EgyptianLNG Train 2, the output of which was sold in its entirety to BG Group'ssubsidiary, BG Gas Marketing (as announced on 25 September 2003). Until Brindisi LNG is operational the production from Egyptian LNG Train 2, inwhich BG Group is a 38 per cent shareholder, will be supplied primarily to theLake Charles LNG importation terminal in Louisiana, USA. On 20 December 2004, Brindisi LNG SpA, a joint venture between BG Group andEnel, announced that the Engineering, Procurement and Construction (EPC)contract for the LNG importation terminal had been awarded to a consortium ledby Tecnimont SpA and including Mitsubishi Heavy Industries Ltd, Grandi LavoriFincosit SpA, Consorzio Cooperativa Costruttori, Sofregaz S.A and VinciConstruction Grands Projets SAS. Speaking today, BG Group Executive Vice President Mediterranean Basin andAfrica, Stuart Fysh, said: "This sale of LNG to Enel, together with the recentBrindisi LNG EPC contract award, represents a significant step forward in thedevelopment of the Brindisi LNG terminal and the importation of a new long termsource of competitively priced natural gas to Italy. Brindisi is an importantbuilding block in the development of BG's strategic plans for LNG transportationand trading in the Atlantic Basin." The Brindisi LNG terminal, which is strategically located to receive LNG fromthe Mediterranean and Atlantic Basin and from the Gulf states will be capable ofprocessing 8 billion cubic metres - or 6 million tonnes - of natural gas perannum. It is scheduled to begin operating in 2008. 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 2003. Notes to Editors: BG Group has been operating in Italy for over ten years and is active in theExploration & Production and Power Generation sectors. To date, the Group hasinvested about 180 million euros in the country's energy sector. With Italianpartners, BG Italia operates eight of the 14 exploration permits andapplications in which it participates in the Po Valley and the Sicily Channel.BG Italia is a shareholder in Serene S.p.A., a joint venture company, which ownsand operates approximately 400 megawatts of co-generation units located in fivesites adjacent to Fiat Auto factories. BG Group works across the spectrum of the gas chain. Active on five continentsin some 20 countries, it operates four business segments - Exploration andProduction, LNG, Transmission and Distribution and Power. Since January 2004, BG LNG Services, LLC (BGLS), has held 100% of the capacityrights at North America's largest operating import terminal, Lake Charles inLouisiana. This has the capability to receive, store, vaporise and deliver anaverage daily send out of 630 million cubic feet per day (mmscfd). Expansionwork is scheduled to increase the average send-out rate to 1.2 billion cubicfeet per day (bcfd) by the start of 2006, and to 1.8 bcfd by mid-2006. BGLS alsohas, since January 2004, supply and regasification rights of 446 mmscfd at theElba Island LNG terminal near Savannah, Georgia, and is involved with KeySpan inproposals to develop and upgrade an LNG terminal at Providence, Rhode Island. In Trinidad and Tobago, BG is a shareholder in Atlantic LNG, which has threetrains producing 10 million tonnes per annum (mtpa) of LNG, most of which issold in the United States market. Train 4 - expected to be the largest LNG trainever constructed - is scheduled to enter production in the first quarter of2006, giving ALNG the capability to produce over 15 mtpa, with scope for furthergrowth. In the Middle East, BG Group is a shareholder in Egyptian LNG, which is buildingtwo trains to utilise gas from fields in the offshore Nile Delta. Train 1 is dueon stream in 2005 with a planned output of 3.6 mtpa - all pre-sold to Gaz deFrance. BG Gas Marketing, a wholly owned BG Group subsidiary, has purchased theentire 3.6 mtpa output of Train 2. A third ELNG train is under consideration.There is scope at the development site for up to six trains. In the United Kingdom, BG Group is a shareholder in The Dragon LNG importationterminal in Milford Haven in West Wales. This £250 million LNG facility isscheduled to be operational in the fourth quarter of 2007. Enquiries: Communications +44 (0) 118 929 3717Out of hours media assistance: +44 (0) 7917 185 707 Investor Relations +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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