BG plc and The Brooklyn Union Gas Company of New York have reached an agreement under which Brooklyn Union, through its subsidiary KeySpan International Ltd, will acquire a 24.5 per cent interest in BG plc's Phoenix Natural Gas Ltd and Premier Transco Ltd subsidiaries.

Phoenix and Premier Transco are leading the development of the natural gas market in Northern Ireland. Phoenix Natural Gas is building a gas distribution system and natural gas market, initially in Greater Belfast. Premier Transco owns and operates the gas pip Greater Belfast area and minimising disruption. So far, more than 70 kms of new mains have been laid. Phoenix has announced that it proposes to invest £160 million in Northern Ireland.

Premier Transco

The key to the creation of a natural gas market in Northern Ireland is the completion by Premier Transco of its gas pipeline from Scotland.

The 24-inch diameter, 135km pipeline runs from Twynholm near Kirkcudbright in south west Scotland to the Premier Power Station at Ballylumford, near Larne in Northern Ireland. There, in addition to supplying the 1000MW power station, which has been converted to gas firing, it meets the 26 km Phoenix pipeline to Torytown, near Belfast.

The Premier Transco pipeline was completed in August, 1996, ahead of schedule, after a planning and construction programme lasting four and a half years.

Notes to editors

BG plc

BG plc (formerly British Gas plc) comprises the Transco gas transportation storage business in Great Britain, BG Exploration & Production, BG International Downstream, and research & technology, pipeline inspection and property businesses. The International Downstream business is involved in gas transmission and distribution, and power generation, around the world. A subsidiary, Premier Power Ltd., operates the power station at Ballylumford in Northern Ireland.

Brooklyn Union

Brooklyn Union Gas is a gas distribution company that provides gas service to 1.1 million customers in New York City. Its subsidiaries own diversified business in gas exploration and production, gas cogeneration projects, and in the Iroquois pipeline, which transports Canadian gas to the north-east United States. Brooklyn Union recently signed an agreement to combine with the Long Island Lighting Company.