BG Gas Marketing Ltd (BGML), a wholly-owned subsidiary of
BG Group plc, announced today that it has signed a long-term
agreement with Equatorial Guinea LNG Holdings Limited (EGLNG)
to purchase liquefied natural gas (LNG). BGML announced on
13 May 2003 that it had signed a Letter of Understanding
in relation to this supply.
The agreement provides for the supply of 3.4 million tonnes
per annum of LNG for a period of 17 years, beginning in late
2007, from the LNG liquefaction plant being developed by EGLNG
on Bioko Island, Equatorial Guinea. An Early Works Programme
of construction has already begun and the plant is expected
to be on-stream in 2007. Feedstock gas for the project will
be sourced primarily from the Marathon-operated offshore Alba
Field.
Martin Houston, Executive Vice President and Managing Director,
North America, Caribbean and Global LNG, said: “This
agreement represents an important step in building our portfolio
of long-term competitively priced LNG. The USA will be the
principal market for this LNG, but the agreement provides
us with flexibility on the destination of the LNG, enabling
BG Group to take advantage of favourable conditions in other
markets.”
EGLNG is jointly owned by subsidiaries of Marathon Oil Corporation
and Compañía Nacional de Petróleos de
Guinea Ecuatorial (GEPetrol).
Notes to Editors
BG Group has four business segments – Exploration & Production,
LNG, Transmission & Distribution and Power Generation.
Active in over 20 countries on five continents, its core
geographical areas are the UK, Kazakhstan, Egypt, Trinidad & Tobago,
South America and India.
BG LNG Services, LLC (BGLS), a wholly owned subsidiary of
BG Group, has rights over 100% of the capacity at North America’s
largest operating LNG import terminal, Lake Charles in Louisiana,
which has the capability to receive, store, vaporise and deliver
an average send-out of 630 million standard cubic feet per
day (mmscfd). In March 2003, the Federal Energy Regulatory
Commission (FERC) gave approval for expansion of the terminal
to 1.2 billion cubic feet per day (bcfd). This first phase
expansion is expected to commence operations at the beginning
of 2006. On 2 February 2004, BGLS reached agreement with Trunkline
LNG and Trunkline Gas for a further expansion, which will result
in an increase of terminal send-out to 1.8 bcfd from the middle
of 2006. This second phase expansion is subject to approval
of FERC.
BGLS, in conjunction with Keyspan, is also seeking to develop
and upgrade an LNG terminal at Providence, Rhode Island. If
successful, this may be the first import terminal to open in
the USA for several years.
In December 2003, BGLS and BGML completed an agreement with
El Paso Merchant Energy (EPME) to acquire all of EPME’s
capacity in the Elba Island LNG regasification terminal near
Savannah in Georgia and related LNG purchase and gas sale agreements.
Through a services agreement with the terminal owner, Southern
LNG Inc, BGLS will, from 1 January 2004 to 1 December 2023,
hold firm capacity rights at the terminal of 446 mmscfd.
Enquiries:
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Jonathan Miller or Chris Carter
+44 (0) 118 929 3188/2597
Out of hours contact number:
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Chris Lloyd / Brian McCleery / Helen Parris
+44 (0) 118 929 3025 |