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BG Group today announced that it has signed an agreement to supply Chile's first Liquefied Natural Gas (LNG) import terminal.
The 2.5 million tonnes per annum (mtpa) terminal in Quintero Bay - approximately 110 kilometres northwest of Santiago - will have the capacity to meet up to 40% of the country’s demand for natural gas. BG is a 40% shareholder in the regasification terminal which is targeted to commence operation in the second quarter of 2009.
BG executed the 21-year LNG sale and purchase agreement to supply Chile with 1.7 mtpa of LNG through the terminal, to be supplied from the company’s global LNG portfolio.
Rick Waddell, BG Executive Vice President, South Americasaid:
"Chile has a vibrant and growing economy which needs new gas supplies and we are ideally placed to work with our Chilean partners to meet that demand.
"The Quintero LNG project expands our South American operations and provides a long-term counter-seasonal market for our LNG portfolio. We are delighted to have finalised our investment and participation in Chile’s first LNG import terminal. "
Background
GNL Quintero SA (GNLQ) is the project company which will own and operate the terminal. In addition to BG’s 40% shareholding, the other partners in the project are the Chilean national oil and gas company ENAP (20%), power company Endesa Chile (20%) and gas distribution company Metrogas (20%).
GNLQ today also entered into agreements for the provision of regasification services at the terminal and for the onward sale of the terminal’s regasified natural gas.
The US$775 million engineering, procurement and construction contracts have been awarded to CB&I.
Notes to Editors:
BG Group plc is a global natural gas business. Active on five continents in 25 countries, it operates four business segments - Exploration and Production, LNG, Transmission and Distribution and Power.
In the USA, BG LNG Services, LLC (BGLS) holds, until 2028, 100% of the capacity rights at North America’s largest operating LNG import terminal, Lake Charles in Louisiana. BGLS also holds supply and regasification rights for 17 years at the Elba Island LNG terminal near Savannah, Georgia.
BG has long-term purchase agreements in place with Equatorial Guinea LNG Train 1, S.A.; Nigeria LNG Ltd; Egyptian LNG Train 2; and with Atlantic LNG Train 4.
In the Middle East, BG is a shareholder in Egyptian LNG Trains 1 and 2 and a third LNG train is under consideration. There is scope at the development site for up to six trains.
BG Group is also the major project shareholder in two proposed regasification terminals, the Dragon LNG import project in Milford Haven, Wales and the Brindisi LNG import project in Brindisi, Italy.
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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 2006. 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 formation tests to be economically and legally producible under existing economic and operating conditions. In this announcement we use the term “undeveloped gas” and in Notes to Editors we use the term “indicated gross 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 avail able at the internet website maintained by SEC at http://www.sec.gov
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