BG Energy Holdings, a wholly owned subsidiary of BG Group, and its partner Keyspan have signed a Sale and Purchase Agreement committing each of them to sell their respective 50% interests in the share capital of Premier Transmission Limited (“PTL”) to Premier Transmission Financing plc ("PT Finance"). PTL's only asset is a gas pipeline between Scotland and Northern Ireland.

The consideration payable for BG Group's 50% equity interest will be approximately £22 million in cash, but this amount is subject to certain adjustments for working capital and the timing of the completion.

The transaction is subject to the purchaser, Premier Transmission Financing plc, completing a fund raising exercise, which BG is advised by PT Finance is anticipated to be finalised by 18 March 2005. When completed, the sale of PTL will have a negligible effect on BG Group’s UK business.

Notes to Editors:

BG Group plc is a global natural gas business. Active on five continents in over 20 countries, it operates four business segments – Exploration and Production, LNG, Transmission and Distribution and Power.

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