BG Group completes sale of QCLNG pipeline

3 June 2015

BG Group completes sale of QCLNG pipeline

BG Group plc (LSE: BG.L), a world leader in exploration and LNG, today announces it has completed the sale of its wholly-owned 543 kilometre pipeline network linking natural gas fields and the Queensland Curtis Liquefied Natural Gas (QCLNG) export facility to APA Group (ASX: APA). This transaction has resulted in gross proceeds for BG Group of around US$4.6 billion. The proceeds reflect indexation movements to the long term tariff payable since the transaction announcement on 10 December 2014, and are in line with the $4.5 to $5 billion range provided in Q1 2015.

Tariffs payable on the pipeline are set to provide a fixed rate of return on the asset base with the

primary tariff components escalating annually with US inflation indices. On an annualised basis, the full pipeline tariff is approximately US$360 million.

The sale proceeds will be used to reduce net debt and to fund future growth investment.

-ends-

Notes to Editors:

· BG Group holds around 74% equity interest in the upstream resource and related infrastructure supplying QCLNG; and 100% of the project's common facilities on Curtis Island (including LNG storage tanks and jetty).

· APA Group (ASX: APA) is Australia's largest natural gas infrastructure business and following the acquisition of the QCLNGpipeline, will own and/or operate around A$19 billion of energy assets. Its gas transmission pipelines span every state and territory on mainland Australia, delivering approximately half of the nation's gas usage. APA has direct management and operational control over its assets and the majority of its investments. For further information visit: www.apa.com.au

About BG Group:

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 than 20 countries on five continents, BG Group combines a deep understanding of gas markets with a proven track record in finding and commercialising reserves.

BG Group trades in the US in the form of ADRs (American Depositary Receipts) on the OTCQX International Premier market under the symbol (OTCQX:BRGYY).

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 2014. 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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