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BG Italia Power

BG Group has been active in Italy since 1992. Current activity in Italy includes: E&P, where BG Group holds one exploration permit in the Po Valley; LNG, where
BG Group is developing a LNG import terminal on the south-eastern coast; and Power, where BG Group owns and operates five co-generation plants.

Key dates

1998
Serene S.p.A. power stations began operation

2004
EPC contract for Brindisi LNG awarded

2005
Construction of Brindisi LNG began

2007
Acquired remaining 66.32% equity in Serene S.p.A. power plants taking ownership to 100%. Renamed BG Italia Power S.p.A.


LNG

BG Group is proposing the development of an 8 bcma (6mtpa) LNG import terminal in the outer harbour of the port of Brindisi (BG Group 100%).

BG Group will have the rights to 80% of the capacity in the terminal on a priority basis, while the remainder will be subject to regulated third-party access. The terminal is strategically located to receive LNG from the Mediterranean and Atlantic Basins and the Gulf States.

In February 2007, the Brindisi LNG site was seized in connection with a criminal investigation by Italian authorities into allegations of improper conduct related to the authorisation process. Criminal charges have been brought against certain current and former employees of BG Group, and against BG Italia S.p.A.. Construction work has been suspended since February 2007 and the site has been seized by the Italian authorities.

In January 2008, BG Group filed an Environmental Impact Assessment (EIA). This followed the suspension of the original Article 8 authorisation in October 2007. Approval of the EIA and revalidation of the Article 8 authorisation is awaited.

The timing of first deliveries to the Brindisi terminal is dependent on how soon access to the site can be restored, approval of the EIA and resolution of the various outstanding legal matters.


POWER

BG Italia Power S.p.A., a wholly owned BG Group subsidiary, owns and operates approximately 400 MWof co-generation at five locations. 100 MW power stations are located at Melfi, Termoli and Cassino, with 50MW stations at Sulmona and Rivalta. The plants have been in operation for 11 years and are located to supply steamto Fiat Auto plants and other adjacent steam offtakers.

BG Italia Power S.p.A. supplies around 2 600 GWh per year of electricity to the grid operator, GRTN, and 400 000 tonnes of steam, primarily to Fiat.

Online icon Further information on BG Italia Power S.p.A. can be found on its website www.bg-italiapower.com

Share Price

LSE
1187.00p

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Office Address

BG Italy
Piazza Cavour 2,
20121 Milano,
Italy

Tel: +39 02 777 94 1
Fax:
+39 02 777 94 440