4th Jan 2007 08:00
BG GROUP plc04 January 2007 Media Information 4th January 2007 BG Group Signs Heads of Agreement for Domestic Gas Sales in Trinidad and Tobago BG Group plc, and its partner Chevron, today announced that they have enteredinto Heads of Agreement (HoA) with The National Gas Company of Trinidad andTobago Limited (NGC) for the supply of 220 million standard cubic feet ofnatural gas per day (mmscf/d) for a term of up to 15 years with initialdeliveries beginning on 1 January 2009. The gas will be delivered to NGC for use in the Trinidad and Tobago domesticnatural gas market. A fully termed gas sales agreement is expected to befinalised in 2007. Martin Houston, BG Executive Vice President and Managing Director, North America, Caribbean and Global LNG, said: "The proposed agreement underpins the commercialization of 1.2 trillion cubicfeet of currently undeveloped gas in the East Coast Marine Area. This is anexcellent project and BG Group is delighted to have reached this agreement withNGC. We are a long-term partner in the country and a key contributor to thedomestic gas supply market. We remain committed to our extensive exploration andproduction activity in the East and North Coast Marine Areas as well as theonshore Central Block and will continue to work closely with the Government topromote further expansion and recovery of Trinidad & Tobago's natural gasresources." 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. Cautionary note to US investors - The United States Securities and ExchangeCommission permits oil and gas companies, in their filings with the SEC, todisclose only proved reserves that a company has demonstrated by actualproduction or conclusive formation tests to be economically and legallyproducible under existing economic and operating conditions. In thisannouncement we use the term "undeveloped gas" and in Notes to Editors we usethe term "indicated gross reserves" that the SEC's guidelines strictly prohibitus from including in filings with the SEC. US investors are urged to considerclosely the disclosure in our Form 20-F, File No. 1-09337, available from us atBG Group, 100 Thames Valley Park Drive, Reading RG6 1PT. You may read and copythis information at the SEC's public reference room, located at 100 F Street NE,Room 1580, Washington, D.C. 20549. Please call the SEC at 1-800-SEC-0330 forfurther information on the public reference room. This filing is also avail ableat the internet website maintained by SEC at http://www.sec.gov Notes to Editors: BG Group plc is a global natural gas business. Active on five continents in over25 countries, it operates four business segments - Exploration and Production,LNG, Transmission and Distribution and Power. BG Trinidad & Tobago BG Group has been operating in Trinidad & Tobago since 1989, and continues toreinforce its position as a major gas player in the country. BG Group currentlysupplies natural gas to the domestic market and to Atlantic LNG primarily forexport to North America. East Coast Marine Area (ECMA) The BG Group operated ECMA contains four natural gas fields: Dolphin, DolphinDeep, Starfish and Manatee. The Dolphin field began production in March 1996 andsupplies 275 mmscf/d of natural gas to NGC under a 20 year supply agreement. TheDolphin Deep field began production in August 2006 and supplies 80 - 100 mmscf/dto Atlantic LNG (ALNG) Train 3 and 120 mmscf/d to ALNG Train 4. The Starfishfield will be developed to fulfil the ALNG Train 3 and Train 4 contracts whenDolphin Deep goes into decline. The Manatee field was discovered in January 2005by BG Group and partner Chevron and is part of a cross border accumulation thatstretches into neighbouring Venezuela. The Manatee-1 well indicated grossreserves of between 1.3 and 1.6 trillion cubic feet of gas on the Trinidadianside of the border. Monetisation options for this gas are being reviewed. BG and Chevron are currently evaluating future exploration drilling plans withinthe ECMA. North Coast Marine Area (NCMA) The BG Group operated NCMA is located 40 kilometres off the north coast ofTrinidad. NCMA includes four gas fields: Hibiscus, Poinsettia, Chaconia andIxora. These fields are being used to supply natural gas to Atlantic LNG Trains2, 3 and 4. NCMA is contracted to supply 240 mmscf/d of natural gas to ALNGTrain 2 for 20 years and also supplies 125 mmscf/d of gas, for the first twoyears of its operation, to ALNG Train 3; this volume reduces to 45 mmscf/dthereafter. Central Block BG Group owns 65% interest in this field and is also the operator, with theremaining 35% interest being owned by the state-owned company Petrotrin. BGGroup supplies 20 mmscf/d of natural gas and 500 barrels per day of liquids toPetrotrin. Atlantic LNG The Atlantic LNG Company of Trinidad & Tobago, in which BG Group is ashareholder, was established in 1995 to liquefy natural gas for export. Thecompany operates the four LNG Trains in operation at Port Fortin. ALNG Train 1, which came into operation in April 1999, produces 3.1 mpta (BGGroup - 26% shareholder). Trains 2 and 3, which became operational in August2002 and April 2003 respectively, produce an average of 6.7 mpta (BG Group -32.5% shareholder). Train 4 (BG Group - 28.89%), is a fully integrated projectfor BG Group, involving the production and liquefaction of gas in Trinidad &Tobago, the shipping of LNG to Lake Charles and the subsequent regasificationfor onward sale into the US market. For more info on Atlantic LNG Company - www.atlanticlng.com Enquiries: Communications +44 (0) 118 929 3717 Out of hours media mobile: +44 (0) 791 718 5707 Investor Relations Chris Lloyd/Helen Parris/ Siobhan Andrews +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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