Power
See description
2007 PERFORMANCE
In 2007, total operating profit* for the Power Generation segment increased 23% to £130 million, principally due to the contribution from power assets in the USA and Italy acquired in late 2006 and 2007. At the end of 2007, BG Group had 4.3 gigawatt (GW) of power capacity. This increased from 4.1 GW in 2006, following the acquisition of the Group’s third power plant in north-east USA.
POWER
UK
Premier Power Limited (BG Group 100%) owns and operates the Ballylumford power station in Northern Ireland. Ballylumford has a maximum operating capacity of 1 316 megawatt (MW) and has generating agreements with NIE Energy.
BG Group also has a 50% interest in the 1 130 MW Seabank power station, near Bristol.
Back to topPhilippines
In the Philippines, BG Group has a 40% stake in the Santa Rita (1 000 MW) and San Lorenzo (500 MW) power stations, which sell electricity under long-term agreements to Meralco, the Philippines’ largest power distribution company.
Malaysia
BG Group has a 20% interest in the Genting Sanyen 760 MW combined cycle gas turbine plant, located 70 kilometres south of Kuala Lumpur, with long-term sales to Malaysia’s national power company.
Italy
In Italy, BG Group owns 100% of Serene S.p.A. (now BG Italia Power S.p.A.) following the completion of the acquisition of the remaining 66.32% equity in February 2007. BG Italia Power S.p.A. operates five thermoelectric plants in Italy, with a total installed gross capacity of 400 MW, and supplies around 2.6 billion Kwh of power and 450 000 tonnes of steam per annum.
USA
During 2007, BG Group announced the acquisition of a third power plant in the USA as part of its integrated US gas strategy. In May 2007, BG Group completed its acquisition of the 264 MW Masspower power plant for US$150 million. The gas- and oil-fired combined cycle facility is located in Massachusetts. This added to the acquisition of the 165 MW Dighton plant, also in Massachusetts, which completed in late 2006, and the 785 MW Lake Road plant in Connecticut, which completed in March 2007.
All three plants are located in north-east USA, in the New England power market. The plants are situated in liquid, well-established power and gas markets. The acquisitions are designed to maximise the return from the existing integrated gas business.
Back to topOTHER ACTIVITIES
In Brazil, through its Iqara subsidiaries, the Group operates co-generation and related energy supply services and compressed natural gas stations supplying NGVs in São Paulo and Rio de Janeiro.
There was significant growth at Iqara in 2007. The co-generation and energy supply service businesses attained a total net revenue increase of 25% compared to 2006, with four new clients installed (three shopping malls and one industrial company), totalling 14 sites in operation.
Power portfolio grows with Italian and US acquisitions
In 2007, total operating profit * for the Power Generation segment grew 23%, primarily as a result of the acquisitions of the remaining 66.32% equity in Serene S.p.A. (now BG Italia Power S.p.A.) and the three US power plants; Dighton, Lake Road and Masspower.
BG Group’s strategy in power is quite different between these two sets of assets. In Italy, the electricity generated is sold to the national grid, while the thermal power is sold to the adjacent FIAT plants and other off-takers for process and heating purposes. The assets are run as stand-alone power businesses.
In the USA, the power assets are an extension of the Group’s integrated gas business.
In this market, BG Group has a portfolio of assets – LNG import capacity and storage, pipeline capacity and the three power plants – enabling the Group to choose where, when and in what form the energy is marketed.
- *
- For a reconciliation between Business Performance and Total Results, see note 2.
Power
portfolio grows with Italian and US acquisitions