BG Group agrees to sell US Power Assets

23 March 2010

BG Group agrees to sell US Power Assets

BG Group today announced that it has signed a Sale and Purchase Agreement with Energy Capital Partners for the sale of all of its power plants in the USA for a total consideration of US$450 million.

The power plants to be sold under this agreement are:

·; Dighton power plant (168 MW) located in Dighton, Massachusetts;

·; Lake Road power plant (812 MW) located in Killingly, Connecticut; and

·; Masspower power plant (264 MW) located in Indian Orchard, Massachusetts.

Closing of the transaction is subject to receiving the customary Federal and State regulatory approvals. The transaction is expected to complete in second quarter 2010.

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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), transmission and distribution and power generation 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

BG Group completed the purchase of Dighton power plant in October 2006, the purchase of Lake Road power plant in March 2007 and the purchase of Masspower power plant in May 2007.

Advisers

Goldman Sachs served as adviser to BG Group.

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Contact:

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

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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 2008. 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.