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Press Release 23 September 2003

BG Group Appoints Martin Houston as Executive Vice President and Managing Director, North America, Caribbean and Global LNG


BG Group plc announced today that Martin Houston, Executive Vice President and Managing Director of the Group's Atlantic, Europe and Mediterranean Basin region, has been appointed to the newly created position of Executive Vice President and Managing Director, North America, Caribbean and Global Liquefied Natural Gas (LNG).

Martin, 45, will take up his new position with immediate effect, and will be based in the company's Houston office in Texas, USA. Responsible for developing the company's global LNG business, Martin will oversee existing operations in Trinidad and the USA and will head-up business development in North America and the Caribbean.

Commenting, Frank Chapman said: "This new position reflects the importance we place on our long-term Atlantic LNG strategy and on the opportunities that exist in the North American market. Beyond the striking success of our Lake Charles operation in the Gulf of Mexico, there is huge potential within the region to accelerate further our LNG business and to build on our position there as a leading supplier to the North American market."

An announcement regarding Martin's successor will be made in due course. In the interim, Jon Wormley, Executive Vice President and Managing Director of BG's UK region will oversee the Europe and Mediterranean region.

Notes to Editors

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 (BGLS), a wholly- owned subsidiary, 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 an average daily send-out of 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 currently owns two LNG ships which are on long-term charters in the Atlantic Ocean and Mediterranean Sea. It also charters four ships, all of which are contracted to either long-term or short-term charters. BG has made commitments to take delivery of two new LNG ships, which will be delivered in mid 2004. In addition, BG has secured options for the delivery of a further four new-build ships in 2006.

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