28th Dec 2006 08:00
BG GROUP plc28 December 2006 Media Information 28 December 2006 BG Group Purchases Lake Road Power Plant in New England, USA BG Group plc today announced that it has signed a Sale and Purchase Agreementfor the purchase of the Lake Road power plant, an 805MW gas and oil firedcombined cycle facility located in Dayville, Connecticut, USA for US$685million. Closing is expected to occur in the first quarter of 2007, shortlyafter receiving Federal Energy Regulatory Commission (FERC) and Hart-ScottRodino approvals. The Lake Road plant supplies power into the ISO New England (ISO-NE), a wellestablished and liquid power market. It is a modern three-unit facility with thepotential for further expansion. Lake Road is BG's second power plant purchasein the region. In October 2006 BG acquired the 170MW combined cycle Dightonpower plant in Bristol County, Massachusetts. BG views the ISO-NE as anattractive market given the newly implemented Forward Capacity Market and therapidly tightening reserve margins in the region. Martin Houston, Executive Vice President and Managing Director of BG NorthAmerica, Caribbean and Global LNG said: "The acquisition of Lake Road represents an important step in the implementationof our integrated US strategy. Lake Road and Dighton have the potential to offerBG attractive returns and will be readily integrated into our growing US gasbusiness." 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 is a global natural gas business. Active on five continents in over 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 Lake Road. BG Group develops, owns and operates power generation facilities across theglobe. It has existing interests in over in 2.75 Gigawatts of power generationcapacity across three continents: Europe and Central Asia • UK - Premier Power Limited (600MW) - a wholly owned subsidiary of BG Group. • UK - Seabank Power Limited (1130MW) - 50:50 joint venture with Scottish and Southern Energy. • Italy - Serene S.p.A. (400MW) - BG Group currently holds a 33.68% interest and, in December 2006, agreed to purchase the remaining 66.32% equity share. Asia Pacific • Malaysia - Genting Sanyen Power (760MW) - BG has a 20% interest and holds a 21 year contract to sell power to the Malaysian national power company. • The Philippines - The Santa Rita Power Station (1000MW) - 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 combined cycle plant in Massachusetts (purchased October 2006). 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 2462 Out-of-hours media mobile: +44 (0)7917 185707 Investor Relations Chris Lloyd/Helen Parris/Siobhan Andrews +44 (0) 118 929 3025 Website: www.bg-group.com -End- This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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