BG Group agrees sale and charter of LNG vessels

23 December 2014

BG Group agrees sale and charter of LNG vessels

BG Group (LSE: BG.L), a world leader in exploration and LNG, has entered into an agreement with GasLog Ltd for them to acquire two modern tri-fuel diesel electric ("TFDE") LNG carriers for proceeds of $460 million. BG Group will charter back the two vessels, the Methane Becki Anne and Methane Julia Louise, for nine and eleven years with further options to extend the term for each vessel by either three or five years. The transactions provide BG Group with flexibility in managing its future fleet requirements and, as the ships are currently managed by GasLog, leave day to day operations broadly unchanged.

The LNG carriers are currently associated with a Pension Funding Partnership which is one element of the Group's funding arrangements for the BG Pension Scheme. Consequently the majority of the proceeds from this sale will be utilised to support the funding of that scheme.

The remaining net proceeds from the transaction of around $100m will be used to reduce the Group's net debt.

Closing of the transaction is subject to the satisfaction of certain conditions, including the completion of definitive documentation. The transaction is expected to close in the first quarter of 2015, with the charter agreement expected to commence at the same time.

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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 than20 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 toBG Group's Annual Report and Accounts for the year ended 31 December 2013. 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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