20th Jun 2008 10:00
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News Release |
20 June 2008
BG Group and CAPCO Sign Agreement for Long-Term Liquefied Natural Gas Supply to Hong Kong
BG Group plc announced today that its wholly owned subsidiary BG LNG Trading (BGLT) has signed a Liquefied Natural Gas (LNG) Heads of Agreement with Castle Peak Power Company (CAPCO), Hong Kong. Under the proposed arrangement, BGLT have agreed to supply one million tonnes per annum to CAPCO's planned LNG import terminal in Hong Kong for a period of up to 20 years.
Initial deliveries are expected to begin in 2013 to coincide with the completion of the LNG terminal on South Soko Island. The LNG will be sourced from BG Group's growing and flexible global portfolio.
BG Group has developed a leading position in Atlantic Basin LNG. The Group is one of the main suppliers of LNG to the United States - the world's largest gas market. It is also the leading exporter of Atlantic Basin LNG to Asia Pacific markets. The Group has long-term purchase agreements in place with Equatorial Guinea LNG; Nigeria LNG; Egyptian LNG; and with Atlantic LNG in Trinidad and Tobago. It also supplies gas to Atlantic and Egyptian LNG as well as holding an equity stake in both facilities. Additionally, BG Group recently completed the formation of an alliance with Queensland Gas Company Ltd to cooperate in the development of a new 3-4 mtpa liquefaction plant in eastern Australia.
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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 BG Group's Annual Report and Accounts for the year ended 31 December 2007. 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.
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 27 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.
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