21st Jun 2005 07:30
BG GROUP plc21 June 2005 MediaInformation 21 June 2005 BG Group and Gaz de France enter agreement for the supply of LNG BG Group plc, today announced that it has entered into an agreement with Gaz deFrance for the purchase of LNG at the rate of approximately 2 cargoes per monthfrom July 2005 until the end of 2006. The volumes are diversions of cargoesoriginally purchased by Gaz de France from Egyptian LNG Train 1 (ELNG). It is planned that the LNG cargoes will be delivered to BG Group's NorthAmerican marketing business at Lake Charles and Elba Island, but there is alsoflexibility to deliver to other terminals. Martin Houston, BG Executive Vice President and Managing Director, North America, Caribbean and Global LNG, said: "This agreement once again demonstratesBG's ability to access LNG arbitrage opportunities to take advantage of positivemarket conditions to provide added value to both BG and Gaz de France." There are matters discussed in this media information that are forward lookingstatements. Such statements are only predictions and actual events or resultsmay differ materially. For a discussion of important factors which could causeactual results to differ from the forward looking statements, refer to theCompany's annual report and accounts for the year ended 31 December 2004. Notes to Editors: BG Group is a global natural gas business. Active on five continents in over 20countries, it operates four business segments - Exploration & Production,Liquefied Natural Gas, Transmission & Distribution and Power Generation. In the Middle East, BG is a shareholder in Egyptian LNG, which is building twotrains to utilise gas from fields in the offshore Nile Delta. Train One is nowon stream and has commenced production several months ahead of schedule, with aplanned output of 3.6 mtpa - Gaz de France signed the SPA for the entire outputof ELNG Train 1 in October 2002. BG Gas Marketing, a wholly owned BG Groupsubsidiary, has purchased the entire 3.6 mtpa output of Train Two, which is dueon stream in the final quarter of 2005. A third LNG train is underconsideration. There is scope at the development site for up to six trains. Partners in Egyptian LNG Train 1 include; BG Group (35.5%), PETRONAS (35.5%),the Egyptian Natural Gas Holding Company (12.0%), the Egyptian General PetroleumCorporation (12.0%) and Gaz de France (5.0%). In the USA, BG LNG Services, LLC (BGLS), holds, until 2024, 100% of the capacityrights at North America's largest operating LNG importation terminal, LakeCharles in Louisiana. This has the capability to receive, store, vaporise anddeliver an average daily send out of 630 million cubic feet per day (mmscfd).Expansion work is scheduled to increase the average send-out rate to 1.2 billioncubic feet per day (bcfd) by the start of 2006, and to 1.8 bcfd by mid-2006.BGLS also holds supply and regasification rights of 446 mmscfd for 22 years atthe Elba Island LNG terminal near Savannah, Georgia, and is involved withKeySpan in proposals to develop and upgrade an LNG terminal at Providence, RhodeIsland. BG has long-term purchase agreements in place with Equatorial Guinea LNGHoldings Ltd, for the supply of 3.4 mtpa for 17 years from 2007, and withNigeria LNG Ltd, for the supply of 2.5 mtpa for 20 years beginning in 2005 orearly 2006. In Trinidad & 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 Four - expected to be the largest LNGtrain ever constructed - is scheduled to enter production in the final quarterof 2005, giving Atlantic LNG the capability to produce over 15 mtpa, with scopefor further growth. Enquiries: Communications +44 (0) 118 929 2462Out of hours media mobile: +44 (0) 791 718 5707Investor Relations Chris Lloyd/Helen Parris/ Kate Bingham +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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