BG plc today announced the sale of a further ten per cent of equity in the Interconnector (UK) Limited (IUK). Through its subsidiary, BG North Sea Holdings Limited, five per cent was sold to Distrigas SA of Belgium and the other five per cent to Ruhrgas UK Exploration and Production Limited, a 100 per cent subsidiary of Ruhrgas AG of Germany.

BG retains 25 per cent of its original 40 per cent shareholding in IUK, in which it invested 40 million. The value of the net assets disposed of was 10 million.

Ruhrgas and Distrigas both increase their shareholding to ten per cent.

In addition to previously announced capacity sales, in December 1998 BG assigned 0.5 billion cubic metres of gas per year (bcm) capacity on a ten-year contract to EnTrade B.V. of The Netherlands.

The majority of BG's original eight bcm of gas transportation capacity has been sold to third parties on ten or 20 year contracts. BG retains some capacity for its Wingas contract and for shorter term sales of both capacity and gas on a delivered basis.

Nick Woollacott, BG International Downstream Senior Vice-President, said: BG has achieved a very successful series of both equity and capacity sales consistent with our strategy of profiting from successful management of development and construction risks and matching our capacity rights to future needs.

Notes to Editors

Ruhrgas, of Germany, supplies gas to distribution companies and industrial customers and operates a gas pipeline network of 10,000 km.

Distrigas, of Belgium, supplies distribution companies, industrial consumers and power stations in Belgium and provides transit services to a large number of international gas companies, including BG, accounting for a total gas flow through their 4000 km grid of 45 bcm/year.

The UK-Continent Gas Interconnector links the national gas transmission system of Great Britain to that of mainland Europe. The gas pipeline runs between Bacton in Norfolk and Zeebrugge in Belgium and became operational on October 1, 1998.

The 40-inch diameter pipeline, which runs for 146 miles, can transmit up to 20 bcm per year in a forward flow direction towards the Continent and up to 8.5 bcm in reverse flow.

Following these equity sales, the percentage holding by shareholders is:

BG (25%); BP (10%); Conoco (UK) Ltd (10%); Elf UK (10%); Gazprom (10%); Distrigas (10%); Ruhrgas (10%); Amerada Hess Ltd (5%); National Power (5%); SNAM (5%)