Stock Exchange Announcement
18 April 2008
BG Group selected by Singapore’s Energy Market Authority to import LNG
BG Group has been selected by the Energy Market Authority (EMA) of Singapore to supply up to 3 million tonnes per annum (mtpa) of liquefied natural gas (LNG) to the Singaporean market for a period of up to 20 years.
Under a Memorandum of Agreement, signed today (April 18 2008), BG Group will act as the aggregator of LNG demand for Singaporean gas users. The Group will be responsible for sourcing and supplying LNG from its growing and flexible global portfolio. Initial deliveries are expected to begin in 2012 to coincide with the completion of the LNG import terminal which will be located on Jurong Island in Singapore. EMA had earlier designated PowerGas Ltd., a wholly owned subsidiary of Singapore Power Ltd., to build, own and operate this facility.
BG Group has developed a leading position in Atlantic Basin LNG. The Group is the main supplier of LNG to the United States – the world’s largest gas market. It is also the leading exporter of Atlantic Basin LNG to Asia Pacific markets. The Group has long-term purchase agreements in place with Equatorial Guinea LNG; Nigeria LNG; Egyptian LNG; and with Atlantic LNG in Trinidad and Tobago. It also supplies gas to Atlantic and Egyptian LNG as well as holding an equity stake in both facilities. Additionally BG Group recently completed the formation of an alliance with Queensland Gas Company Ltd to cooperate in the development of a new 3-4 mtpa liquefaction plant in eastern Australia.
BG Group Executive Vice President and Managing Director, Americas and Global LNG Martin Houston said: “This agreement will underpin our commitment to support Singapore’s long-term energy goals. We look forward to deploying our global market reach and expertise to meet the needs of Singaporean gas users. The agreement – the first of its kind for BG Group in the Asia Pacific market – represents a very positive step forward both for Singapore and for BG.”
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There are matters discussed in this media information 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 the forward looking statements, refer to the Company’s annual report and accounts for the year ended 31 December 2007. The Company 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.
Notes to Editors:
About BG Group
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 27 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 an excellent track record in finding and commercialising reserves.
About Energy Marketing Authority (EMA)
EMA was established in the 2001 to forge a secure, long-term energy industry that thrives on healthy competition. New market structures have been created to promote competition in the electricity and piped gas industries. In January 2003, the National Electricity Market of Singapore commenced operation. In May 2007, the Gas (Amendment) Bill was passed, opening access to the gas sector. EMA will also continue to achieve cost competitive outcomes for consumers by ensuring a level playing field within the energy industry
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