BG Group plc and partners have announced today that 12 international banks and three Egyptian banks have been mandated to arrange financing for the US$1.35 billion first train of the Egyptian LNG project.

Egyptian LNG is developing a natural gas liquefaction plant with a 3.6 million tonnes per annum (mtpa) capacity at Idku, approximately 50 kilometres east of Alexandria. Construction of Train 1 is under way and first production is expected in the third quarter of 2005. The entire output of Train 1 has been sold to Gaz de France under a 20-year agreement.

An early works programme for a proposed 3.6 mtpa second train has been authorised and any required financing for this train will be undertaken separately. Production is scheduled for around mid-2006.

Total completed project costs for Train 1 amount to US$1.35 billion including financing costs and contingencies. Debt will cover 85 per cent of the financing needs and will comprise:

• A US$150 million Egyptian Loan Facility

• US$1 billion International Credit Facilities consisting of:

  • A US$550 million International Loan Facility

  • A US$225 million European Investment Bank Article 18 Guarantee Facility

  • A US$225 million European Investment Bank Euromed Guarantee Facility.

The mandated lead arrangers have fully underwritten the facilities and are working on the finalisation of the facilities agreement. Financial close is targeted for the end of the first quarter, 2003.

Notes to Editors

The shareholders in Train 1 which have mandated the financiers are -

The International mandated lead arrangers are - ANZ Investment Bank division ("ANZ"), Arab Petroleum Investments Corporation ("Apicorp"), Bayerische Landesbank ("BLB"), The Bank of Tokyo-Mitsubishi, Ltd ("BTM"), Crédit Lyonnais ("CL"), HSBC Bank plc ("HSBC"), IntesaBci S.p.A. ("IntesaBCI"), Royal Bank of Canada ("RBC"), The Royal Bank of Scotland plc ("RBS"), SANPAOLO IMI S.p.A. ("SPI"), Société Générale ("SG") and West LB AG ("West LB").

The Egyptian mandated lead arrangers are - Commercial International Bank (Egypt) S.A.E. ("CIB"), Misr International Bank S.A.E ("MIBank") and National Societe Generale Bank S.A.E. ("NSGB").