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Press Release 21 August 2002

BG Group continues to expand its Atlantic Basin LNG Interests


BG Group plc announced today that the BG-operated North Coast Marine Area (NCMA) Hibiscus field, off the north coast of Trinidad, has produced first gas into the newly commissioned Train 2 at Atlantic LNG.

NCMA, one of the largest offshore developments in Trinidad & Tobago waters, is intended to supply all BG capacity in Train 2 for up to 20 years at 240 million standard cubic feet of gas per day (mmscfd). The NCMA partnership comprises BG (Operator) 45.9 per cent, Petrotrin 19.5 per cent, Agip 17.3 per cent and PetroCanada 17.3 per cent.

BG is a 32.5 per cent shareholder in the US$1.1 billion Atlantic two train expansion at Point Fortin, which is due to increase gross liquefied natural gas (LNG) production from 3.3 million tonnes per annum (mtpa) to 9.9 mtpa when Train 3 comes on-stream, scheduled for the second quarter of next year.

Martin Houston, Executive Vice President, BG Group plc, said: "BG Group's strategy to link indigenous reserves with world class projects has been realised with a new gas province offshore Trinidad, and one which underpins our shareholding in the Atlantic LNG expansion. Our progress in Trinidad & Tobago strengthens the Group's growing LNG position and our increasing exploration and production activities in the region."

In addition, BG (Operator, 50 per cent) and partner ChevronTexaco in the East Coast Marine Area (ECMA) have received approval from the Ministry of Energy and Energy Industries for development of the Dolphin Deep and Starfish fields for supply into Train 3. BG capacity in Train 3 is 125 mmscfd, which is planned to be supplied from NCMA for the first two years. Thereafter Train 3 is intended to be supplied from ECMA (80 mmscfd) and NCMA (45 mmscfd).

LNG production from BG capacity in Trains 2 and 3 will be sold to El Paso Merchant Energy under a long term contract for import into the Elba Island LNG receiving terminal in Georgia, USA. During 2002, LNG produced from Train 2 is intended for re-gasification at the Lake Charles importation terminal in Louisiana and sale into the US market. From January 1, this year, BG took control of 80 per cent of the capacity at Lake Charles, which has the capability to receive, store, vaporise and deliver an average daily send-out of 630 mmscfd.

Peter Dranfield, Vice President, BG Trinidad & Tobago, said: "Our growth in gas production offshore Trinidad & Tobago is planned to keep pace with the rapidly expanding liquefaction plant at Atlantic LNG which is set to become one of the world's largest liquefaction facilities. We very much look forward to commencement of production into Train 3 and a successful outcome to the current negotiations with the Government of the Republic of Trinidad and Tobago to allow the proposed 5.2 million tonne Train 4 to be operational in late 2005. These announcements today reaffirm our growth in the Atlantic Basin LNG business."

Partners in Atlantic LNG 2/3 Company are BG T&T (32.5 per cent), BP (42.5 per cent) and Repsol (25 per cent).


There are matters discussed in this media information that are forward looking statements. Such statements are only predictions and actual events or results may differ materially. For a discussion of important factors which could cause actual results to differ from the forward looking statements, refer to the Company's annual report and accounts for the year ended 31 December 2001.

Notes to Editors

The Government of Trinidad & Tobago approved the Atlantic LNG Trains 2 and 3 expansion in February 2000 and the NCMA development in December 2000.

Located 40 kilometres offshore, the US$300 million NCMA deep-water development comprises three gas fields - Hibiscus, Poinsettia, and Chaconia - with total proved and probable reserves of 2.4 trillion cubic feet. The development is linked to Atlantic LNG's Point Fortin facility via a 107 kilometres, 24-inch pipeline, the longest offshore pipeline in Trinidad & Tobago waters. The pipeline has the capacity to transport 400 mmscfd.

Phase 2 of the NCMA development includes drilling three wells which are scheduled to be brought into immediate production in the second quarter, 2003. In Phase 3, six subsea wells are planned on the Poinsettia field to begin production in 2009. A possible fourth phase would involve installation of compression facilities on the Hibiscus platform.

BG Trinidad & Tobago (BG T&T) is operator of the Dolphin field, ECMA, in a 50/50 joint venture with ChevronTexaco. The field supplies in excess of 260 mmscfd to the National Gas Company of Trinidad and Tobago under a 20-year supply contract.

A Production Sharing Contract for Block 3a, north ECMA, was signed in April 2002 by partners BG T&T, Operator BHP, Talisman (each with 30 per cent equity), TotalFinaElf (10 per cent), and the Government.

BG T&T is a 26 per cent shareholder in the US$1 billion ALNG Company which began operations in April 1999. Train 1 exports to markets in north eastern USA, Puerto Rico and Spain. Other shareholders are BP (34 per cent), Repsol (20 per cent), Tractebel (10 per cent) and National Gas Company (10 per cent).

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