BG Energy Holdings Limited, a subsidiary of BG Group
plc, announced today that it has signed a Memorandum
of Understanding (MoU) with Petroplus International NV
(Petroplus) for the joint development, ownership and
operation of an LNG import and regasification facility
at Milford Haven, Wales.
BG intends to acquire a 50 per cent equity stake in
Dragon LNG Limited, a special purpose project company
established to develop the project. In addition to this
equity position, BG intends initially to contract for
the use of 2.2 million tonnes per annum (mtpa) of capacity
at the facility. This represents half of the initial
planned throughput capacity. The process for the sale
of the remaining capacity is continuing.
Martin Houston, Executive Vice President and Managing
Director, North America, Caribbean and Global LNG, said: “BG
is already a major supplier of gas to the UK and is committed
to continuing to seek new ways to serve this growing
market. The development of this facility with our partner,
Petroplus, will allow us to deliver competitively priced
natural gas to meet expected market requirements. This
project will extend our position in the UK and strengthen
our LNG leadership position in the Atlantic Basin.”
Paul van Poecke, Chief Executive Officer, Petroplus
Logistics, said: “We are very pleased to announce
the successful conclusion of an MoU with BG. The transaction
is a significant step forward in Petroplus' strategy
of rebalancing activities and is consistent with our
broader strategic agenda.”
The new facility, which is expected to be operational
in 2007, has received planning permission and would deliver
natural gas into the UK market via the national transmission
system. With the UK set to become a net importer of gas
in the later half of this decade, it would provide increased
security of supply through access to a range of international
gas supply sources.
The existing Milford Haven site includes marine docking
and unloading facilities at three berths. The development
proposal provides for the adaptation of these facilities
for use as an LNG tanker berth, with pipelines and other
facilities as necessary for unloading LNG and transporting
it to storage tanks onshore within the existing site.
Notes to Editors:
Milford Haven Facility
The Petroplus Milford Haven facility, located in Wales,
United Kingdom, was acquired by Petroplus from Chevron
in 1998. The complex comprises
1 550 000 cubic meters of storage capacity, deepwater jetties
and a mothballed refinery including a cogeneration facility.
Petroplus Tankstorage BV, a wholly owned subsidiary
of Petroplus International NV, currently operates the
site as a commercial tank farm for petroleum products.
BG Group
LNG represents one of BG Group's core business
segments. The Company is involved in developing LNG projects
in Trinidad & Tobago, Egypt, Italy, India, Indonesia,
Bolivia and Iran.
In January 2002, BG LNG Services, LLC (BGLS), a wholly
owned subsidiary of BG Group, took 81 per cent of the
capacity at North America's largest operating import
terminal, Lake Charles in Louisiana, which has the capability
to receive, store, vaporise and deliver 4.7 million tonnes
per annum (mtpa). From September 2005, BGLS will take
100 per cent of the capacity. In March 2003, the Federal
Energy Regulatory Commission gave approval for expansion
of the terminal to 8.9 mtpa. Construction of the expansion
plant is expected to be completed by the beginning of
2006.
BG has four business segments – Exploration & Production,
LNG, Transmission & Distribution and Power Generation.
Active in some 20 countries on five continents, its core
geographical areas are the UK, Kazakhstan, Egypt, Trinidad
and Tobago, South America and India.
Petroplus International NV (Petroplus)
Petroplus International NV (Petroplus) was established
10 years ago and is a leading player in the European
midstream oil market. The midstream sector encompasses
refining, marketing and logistics (predominantly tank
storage).
Petroplus is the owner of refineries in Antwerp (Belgium),
Cressier (Switzerland) and Teesside (United Kingdom)
with a total capacity of 270 000 barrels per day. Petroplus
has a sales volume in excess of 20 million tonnes a year
of oil products and a storage capacity of almost 5 million
cubic metres throughout Western Europe.
Petroplus International NV is publicly listed in the
NextPrime segment of Euronext, Amsterdam.
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