BG Signs Up for Two New Liquefied Natural Gas (LNG) Ships

BG Signs Up for Two New Liquefied Natural Gas (LNG) Ships
Stock Exchange Annnouncement	4 January 2007

BG Group plc today announced that it has signed an agreement with Samsung Heavy Industries Co Limited of South Korea for the delivery of two new-build dual-fuel diesel electric (DFDE) LNG ships. The new ships will each have a cargo capacity of 170,000 cubic-metres (m3) and are scheduled to be delivered in 2010.

Martin Houston, Executive Vice President and Managing Director, North America, Caribbean and Global LNG, said:
“Today’s agreement demonstrates our commitment to build and operate LNG carriers of the highest standard. I am delighted that we will continue our long-term relationship with Samsung. These two new vessels will replace some of our chartered ships, will improve our fleet’s performance and provide us with increased flexibility in meeting the growing demand by our customers for clean burning natural gas.”

Samsung will build, equip, launch and deliver the ships using the GTT Mark III membrane cargo containment system. The specification will be a new design of 170,000 m3 (cargo capacity) and will provide maximum flexibility for access into re-gasification terminals around the world. The design incorporates hull modifications and DFDE propulsion technology, which is expected to substantially improve operating efficiency and reduce air emissions compared to conventional steam turbine technology.

An additional four vessels, each with a cargo capacity of 145,000 m3, are currently under construction at Samsung Heavy Industries, Geoje Island Shipyard, South Korea. These ships are scheduled for delivery in 2007 and early 2008.

Notes to Editors:

BG Group plc is a global natural gas business. Active on five continents in over 25 countries, it operates four business segments – Exploration and Production, LNG, Transmission and Distribution and Power.

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There are matters discussed in this media information that are forward looking statements. Such statements are only predictions and actual events or results may differ materially. For a discussion of important factors which could cause actual results to differ from the forward looking statements, refer to the Company’s annual report and accounts for the year ended 31 December 2005. The Company does not undertake any obligation to update publicly, or revise, forward looking statements, whether as a result of new information, future events or otherwise, except to the extent legally required.

Cautionary note to US investors – The United States Securities and Exchange Commission permits oil and gas companies, in their filings with the SEC, to disclose only proved reserves that a company has demonstrated by actual production or conclusive information tests to be economically and legally producible under existing economic and operating conditions. In the Notes to Editors we use the term “estimated recoverable reserves” that the SEC's guidelines strictly prohibit us from including in filings with the SEC. US investors are urged to consider closely the disclosure in our Form 20-F, File No. 1-09337, available from us at BG Group, 100 Thames Valley Park Drive, Reading RG6 1PT. You may read and copy this information at the SEC's public reference room, located at 100 F Street NE, Room 1580, Washington, D.C. 20549. Please call the SEC at 1-800-SEC-0330 for further information on the public reference room. This filing is also available at the internet website maintained by SEC at http://www.sec.gov