Disposal

 July 2, 2010

BG Group agrees to sell its interest in Premier Power Limited

BG Group today announced that it has signed a Share Sale Agreement with AES Ballylumford Holdings Limited, a wholly owned subsidiary of AES Corporation, for the sale of Premier Power Limited, a wholly owned subsidiary of BG Group, for a total consideration of £99 million (approximately $150 million).

Premier Power Limited operates the 1 246 MW power plant located at Ballylumford in Northern Ireland.

Closing of the transaction is subject to receiving the customary regulatory approvals. The transaction is expected to complete in the second half 2010.

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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

Ballylumford power station is the largest electricity generation site on the island of Ireland. The facility consists of three power stations with a gross capacity of 1 316 MW (1 246 MW effective): (i) a 600 MW Combined Cycle Gas Turbine ("CCGT") unit completed in 2003 ("C" Station); (ii) a 600 MW nominal capacity (540 MW effective) conventional thermal plant ("B" Station); and, (iii) two Open Cycle Gas Turbine ("OCGT") units providing an additional 116 MW nominal capacity (106 MW effective) for grid support and emergency response. The CCGT, one of the three thermal units and the OCGT units are contracted to NIE Energy Ltd under long term power purchase agreements, while the remaining "B" Station units sell their output merchant into the Single Electricity Market ("SEM").

The consideration in US$ is dependent on exchange rates at the time the transaction completes.

Advisers

Goldman Sachs served as 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.