BG International has agreed the sale of its 22 per cent shareholding in PTT Natural Gas Distribution Company Ltd (PTTNGD) in Thailand to Tractebel of Belgium for 350.9 million Thai Baht (around US$9m) in cash.

This increases Tractebel's shareholding to 49 per cent. The other joint venture partners are the Petroleum Authority of Thailand (PTT), 49 per cent, and the Thai Bureau of the Crown Property, 2 per cent.

PTTNGD was formed in 1996 to distribute natural gas to industrial estates in the Bangkok area and currently supplies 42 local industrial customers with over 12 million cubic feet of gas per day (mmcfd) and provides transport capacity for a further 24 mmcfd.

David McManus, Executive Vice President of BG International said: "Thailand is an important country for BG, with our major investment in the Bongkot gas field. PTTNGD, while delivering a very strong return on BG's investment, represented a very small percentage of our total investment in the country and was regarded as a non-core asset."

BG has been active in Thailand for more than 10 years and has invested US$340 million in the country, and plans to invest approximately US$165 million over the next ten years.

BG International has a 22.222 per cent shareholding in the Bongkot gas field in the Gulf of Thailand. The field which came on stream in 1993, now produces 550 mmcfd daily contract quantity, and supplies nearly one third of the country's gas demand.

The latest phase of development to maintain this daily contract quantity is currently underway and involves construction and installation of two further wellhead platforms and drilling of a further 42 wells.

PTTEP, the exploration and production arm of the Petroleum Authority of Thailand has a 44.45 per cent shareholding and operates the field. TotalFinaElf of France has a 33.33 per cent interest.