2nd Apr 2007 09:00
BG GROUP plc02 April 2007 Media Information 02 April 2007 BG Group Purchases Masspower Power Plant in Massachusetts, USA BG Group plc today announced that it has signed a Sale and Purchase Agreementwith Silver Ship MP Partners, a partnership between Flagship Energy and fundsaffiliated with private investment firm Silver point capital, for BG's purchaseof the Masspower power plant, a 262 MW gas and oil fired combined cycle facilitylocated in Indian Orchard, Massachusetts, USA for US$150 million. Closing isexpected to occur in the second quarter of 2007. The Masspower facility supplies power into the Independent System Operator NewEngland (ISO-NE), a well established and liquid power market. Masspower is BG'sthird power acquisition in New England. In October 2006 BG acquired the 170MWcombined cycle Dighton power plant in Bristol County, Massachusetts and in March2007 BG acquired the 805MW gas and oil fired combined cycle Lake Road facilityin Bristol County, Massachusetts. Martin Houston, Executive Vice President and Managing Director of BG NorthAmerica, Caribbean and Global LNG said: "Masspower is in our focus market, ISO-NE, which is particularly attractivegiven the rapidly tightening reserve margins in the region and the newlyimplemented Forward Capacity Market. Masspower is an excellent asset in afavourable location that will allow BG to enhance its portfolio of power assetsand gas positions in the northeast US." 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 2005. TheCompany does not undertake any obligation to update publicly, or revise, forwardlooking statements, whether as a result of new information, future events orotherwise, except to the extent legally required. Notes to Editors: BG Group plc is a global natural gas business. Active on five continents in 25countries, it operates four business segments - Exploration and Production, LNG,Transmission and Distribution and Power. ISO-NE is a regional transmission organisation (RTO), serving Connecticut, Maine, Massachusetts, New Hampshire, Rhode Island and Vermont. The Forward Capacity Market (FCM) is a mechanism implemented by ISO-NE to ensurea controlled approach to new generation build in the region. Operational fromDecember 2006, FCM gives a fixed monthly capacity payment to existing generationcapacity. This provides an additional revenue stream for Masspower. BG Group develops, owns and operates power generation facilities across theglobe. It has existing interests in over in 3.55 Gigawatts of power generationcapacity across three continents: Europe and Central Asia • UK - Premier Power Limited (1316MW) - a wholly owned subsidiary of BGGroup. • UK - Seabank Power Limited (1130MW) - 50:50 joint venture with Scottishand Southern Energy. • Italy - Serene S.p.A. (386MW) - BG Group has 100% ownership ofco-generation at five locations adjacent to Fiat Auto factories. The powerstations are located at Melfi, Termoli, Cassino, Sulmona and Rivalta. Asia Pacific • Malaysia - Genting Sanyen Power (760MW) - BG has a 20% interest andholds a 21 year contract to sell power to the Malaysian national power company. • The Philippines - The Santa Rita Power Station (1000MW) and San Lorenzo (505MW) - BG Group has a 40% interest and the remaining 60% is owned by First Gas Holdings Corporation. United States • Dighton Power plant (170MW) - BG has 100% ownership of this combined cycle plant in Massachusetts (purchased October 2006). • Lake Road (805MW) - BG has 100% ownership of this combined cycle plantin Connecticut (purchased March 2007). BG North America In the USA, BG LNG Services LLC, (BGLS), holds - through 2028 - 100% of thecapacity rights at North America's largest operating LNG importation terminal,Lake Charles in Louisiana. This facility has the capability to receive, store,vaporise and deliver an average daily send out of 1.8 billion cubic feet per day(bcf/d). Additionally, BGLS currently holds supply and regasification rights of 446million standard cubic feet per day (mmscf/d) for 22 years at the Elba IslandLNG terminal near Savannah, Georgia. Expansion work is expected to increase itsthroughput capacity to 1.17 bcf/d from 2012. Enquiries: Communications: +44 (0) 118 929 2462Out of hours media mobile: +44 (0) 791 718 5707 Investor Relations: +44 (0) 118 929 3025 Website: www.bg-group.com - ends - This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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