BG sells Power Station interest in Philippines

29 September 2010

BG Group agrees to sell its interests in Santa Rita and San Lorenzo power stations in the Philippines

BG Group today announced that it has signed a Sale and Purchase Agreement (SPA) with Korea Electric Power Corporation for the sale of the Group's 40% interests in both the Santa Rita and San Lorenzo power stations in the Philippines for a net consideration of approximately US$400 million. The net consideration is subject to standard completion adjustments, including interest to be paid to BG Group upon closing which is expected in first quarter 2011. Closing of the transaction is subject to receiving necessary waivers and consents from non-recourse lenders and First Philippine Holdings Corporation.

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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 has indirect 40% holdings in First Gas Holdings Corporation (which is the parent company of First Gas Power Corporation, owner of the Santa Rita plant) and FGP Corp (which owns the San Lorenzo plant). First Philippine Holdings Corporation which is ultimately controlled by the Lopez Group, is the indirect holder of the remaining 60% interest in both plants. Both power plants are operated by Siemens Power Operations Inc.

The Santa Rita and San Lorenzo power plants have a capacity of 1000MW and 500MW respectively. Both combined cycle natural gas-fired power plants are located in Batangas, on the island of Luzon, 80 kilometres south of Manila.

Santa Rita and San Lorenzo have been in commercial operation since August 2000 and October 2002, respectively. The power generated by the plants is sold under contract to Manila Electric Company (Meralco).

Advisers

Rothschild served as financial adviser to BG Group.

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Contact:

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

Jo Thethi: +44 (0) 118 929 3110 [email protected]

Out of Hours Media Mobile: +44 (0) 7917 185 707

Investor Relations: +44 (0) 118 929 3025 [email protected]

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 2009. 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.