BG Group plc via a subsidiary, BG Energy Holdings Limited, today concluded the sale of 24.5 per cent of Phoenix Natural Gas Limited, the Northern Ireland natural gas distribution company, to East Surrey Investments Limited.

The sale, announced on February 28, 2001, has reached financial close realising proceeds of about £50 million for the Group.

Agreement for the sale was sought and approved by East Surrey Holdings' shareholders at an Extraordinary General Meeting on March 16, 2001.

Notes to Editors

Phoenix Natural Gas Limited is Northern Ireland's only natural gas distribution company supplying Belfast and the Greater Belfast area.

The shareholders in Phoenix are BG (51 per cent); KeySpan Corporation (24.5 per cent); and East Surrey Investments (24.5 per cent).

East Surrey Investments Limited is a wholly owned subsidiary of East Surrey Holdings plc.