Equal partners BG plc and Scottish and Southern Energy plc have awarded a turnkey contract for the construction of the 120 million second phase of Seabank power station, at Hallen, Bristol, to Siemens plc.

The additional 385MW of generation capacity in Phase 2 will bring Seabank's total to 1140MW. Seabank Power Limited, jointly owned by Scottish and Southern Energy and BG, began expansion work last summer and the station is due for completion in spring 2001. BG Exploration and Production is supplying gas for Seabank under an eight year agreement with Scottish and Southern Energy, who will purchase all the output of Seabank.

Nick Woollacott, BG International Downstream Senior Vice President, said: "Seabank, which uses combined cycle gas turbine technology, is one of the UK's most efficient power stations. The additional capacity will be capable of operating profitably at both mid-merit and base load, utilising infrastructure put in place for the first phase. The Seabank investment fits well with our approach of creating and investing in gas chains which link upstream reserves with downstream markets."

Dr James Martin, Scottish and Southern Energy's Generation Director, added: "The fulfilment of Seabank to 1140MW fits well into our generation mix, which is the most modern and fuel diverse of the major UK generators. Scottish and Southern Energy has more than three million electricity customers and this potent addition at the right location on the grid and with design features targeting the mid-merit sector adds further to our competitiveness. With an efficiency in the high fifties, Seabank should be welcomed to the front of the UK fleet, particularly at a time when we are seeking emission reductions to meet international undertakings."

Notes to Editors

• The 755MW initial phase of Seabank, a 315 million project, which also includes a 26 kilometre, 42-inch pipeline and a gas compressor station, is already generating into the national grid.
• 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.
• Scottish and Southern Energy plc was established in December 1998 from a merger of Scottish Hydro-Electric and Southern Electric. The company has 3.3 million customers, from the Isle of Wight to Shetland. Its generation fleet is the most modern of the major UK generators with modern gas-fired stations and a fleet of embedded plants and combined heat and power stations.
• At Peterhead, in a UK first, it is repowering its 1140MW power station to latest CCGT performance whilst incorporating the existing steam boilers. The company is also the largest generator of renewable energy in the UK with over 40 per cent of the market.