A new unit is being created today within the BG plc group of businesses.

BG is separating its peak and seasonal gas storage activities into a separate stand-alone unit - BG Storage.

Until recently, these activities were combined with Transco - the regulated gas pipeline business. The separation had been envisaged for some time by both BG and Ofgas, but put on hold pending the outcome of the recent MMC inquiry. Ofgas will be issuing a consultation document on the framework for the future regulation and development of competition in Storage later this year.

The separation is a continuation of BG's strategy of providing its businesses with clear management focus and the freedom to move quickly in an increasingly competitive environment.

Describing how the changes will affect BG Storage's customers, Howard Higgins, Managing Director, said "We already offer a broad range of gas storage services to our customers which are increasingly being used as part of their day to day gas resourcing strategy.

"Separation and the development of a regulatory framework, appropriate for our highly competitive market place, will give us the incentive to be more creative in meeting existing and future customer needs. Key to the success of BG Storage will be to continue to work closely with our customers, while seeking every opportunity to develop and grow. Everyone in BG Storage looks forward to meeting the challenges ahead."

The Directors appointments are as follows:

• Howard Higgins, Managing Director

• Rebecca Brealey, Director, Finance

• Bill Russell, Director, Operations

• Martin Kinoulty, Director, Development

• Noel Copperthwaite, Director, Customer Services