BG North Sea Holdings Limited, a subsidiary of BG plc,
has reached agreement to sell a 25.5 per cent share of
the equity in Premier Transco Limited to KeySpan (UK)
Limited, a subsidiary of KeySpan Energy (KeySpan) of
the USA for £19.5 million. Premier Transco is the owner
and operator of the gas pipeline linking Northern Ireland
to Scotland.
The agreement will increase KeySpan's interest in Premier
Transco to 50 per cent, while BG will retain its 50 per
cent interest and continue to have operational responsibility.
Nick Woollacott, Senior Vice-President for Europe and
North America, with responsibility for Premier Transco,
commented: "This disposal is a further demonstration
of BG's ability to create value in downstream projects
and release that via selective sales to third parties.
In so doing we always try to bring in partners who themselves
can add value and we are very pleased with the way KeySpan's
skills have meshed with ours in developing Premier Transco."
Robert B Catell, Chairman and Chief Executive Officer
of KeySpan, said: "KeySpan's experience in gas transportation
and distribution is ideally suited to the development
of the gas market in Northern Ireland. We see our business
growing dramatically as natural gas becomes the fuel
of choice in the province. There are several other opportunities
for potential expansion in Northern Ireland that we intend
to pursue, including other pipeline projects as well
as power generation. Our objective is to establish a
diversified island-wide energy business in Northern Ireland
and the Republic of Ireland".
Notes to Editors
The 24-inch diameter, 135 km Scotland to Northern Ireland
natural gas pipeline (SNIP), commissioned in 1996, runs
from Twynholm near Kirkcudbright in south west Scotland
to Ballylumford Power Station near Larne in Northern
Ireland.
At Ballylumford, in addition to supplying the power
station, it feeds the 26 km Phoenix Natural Gas pipeline,
which runs to Carrickfergus, near Belfast.
The pipeline's current capacity is approximately 1.8
million therms per day. This will rise to approximately
three million therms per day following completion of
a planned gas compression project in October 2000.
BG plc
BG plc (formerly British Gas plc) comprises the Transco
gas transportation business in Great Britain, BG Exploration
and Production and BG International Downstream, as well
as technology, gas storage and properties businesses.
BG International Downstream is involved in gas transportation,distribution
and power generation activities in North and South America,
North Africa, India, Italy and South East Asia as well
as the UK.
BG is the owner of Premier Power Limited, the operator
of Ballylumford power station, the largest generator
in Northern Ireland.
BG also has a 75.5 per cent stake in Phoenix Natural
Gas Limited, the company developing the gas distribution
network in the Greater Belfast area, with KeySpan holding
24.5 per cent.
BG is committed to substantial investment in Northern
Ireland, where the BG group of companies has spent over £350
million to date, and has plans for further investments
totalling around £400 million.
KeySpan
KeySpan has interests in gas exploration, production
and transportation in the United States and internationally,
including Premier Transco and Phoenix Natural Gas in
Northern Ireland. Through its principal subsidiary, Brooklyn
Union, it supplies over 1.5 million customers in New
York. |