Italy

BG Group holds one exploration permit in the Po Valley.

BG Group is proposing the development of an 8 bcm (6 mtpa) LNG import terminal in the outer harbour of the port of Brindisi (BG Group 100%).

BG Group will have the rights to 80% of the capacity in the terminal on a priority basis, while the remainder will be subject to regulated third-party access. The terminal is strategically located to receive LNG from the Mediterranean and Atlantic Basins and the Gulf States.

In January 2008, BG Group filed an Environmental Impact Assessment (EIA). This followed the suspension of the original Article 8 authorisation in October 2007. In July 2010, the EIA Decree was issued by the Ministry of Environment.

Construction work has been suspended since February 2007. The timing of first deliveries to the Brindisi terminal is dependent on how soon access to the site can be restored and resolution of the various outstanding legal matters.

BG Italia Power S.p.A., a wholly owned BG Group subsidiary, owns and operates approximately 400 MW of co-generation at five locations. 100 MW power stations are located at Melfi, Termoli and Cassino, with 50 MW stations at Sulmona and Rivalta.

The plants have been in operation for 13 years and are located to supply steam to Fiat Auto plants and other adjacent steam offtakers.

BG Italia Power S.p.A. supplies around 2 600 GWh per year of electricity to the grid operator, GRTN, and 450 000 tonnes of steam, primarily to Fiat.