Dragon LNG | Energy Marketing | Premier Power Limited | Seabank Power Limited | Operations Map
BG Group’s UK Downstream activities encompass LNG importation, energy marketing and power generation. BG Group sells gas on a wholesale basis and exports gas for sale to, and purchases gas for import from, mainland Europe via the Interconnector. The Group owns interests in two gas-fired power stations.
Key dates
1997
Premier Power Limited converted from oil to natural gas
2001
Seabank Phases 1 and 2 entered full operation
2003
600MWCCGT plant at Premier Power completed
2007
Equity stake in Interconnector (UK) Limited sold
In third quarter 2009, the Dragon LNG import terminal at Milford Haven in Wales became operational, with the terminal receiving its first commissioning cargo in July 2009. Ownership of the terminal is BG Group 50%, PETRONAS 30% and 4Gas 20% and there are 20-year arrangements in place governing the use of capacity rights
(BG Group 50%, PETRONAS 50%), allowing BG Group and PETRONAS to each send out up to 3 bcm (106 bcf) gas per year, from around 2.2mtpa LNG.
BG Group has contracted pipeline capacity with National Grid.
BG Group’s intention is to use the Dragon terminal capacity when UK prices are internationally attractive, sourcing the LNG from its global supply portfolio.
In 2008, BG Group produced 5.2 bcm gas from the UK Continental Shelf (UKCS), the equivalent of approximately 6% of UK gas demand. The Group sells gas on a wholesale basis principally at the UK National Balancing Point under contracts with varying durations. BG Group is an active participant in the entry capacity auctions held by National Grid and in the on-the-day commodity market and other electronic trading systems that help shippers balance their supply and demand. BG Group owns both import and export capacity in the Interconnector pipeline, which it uses to ship gas to take advantage of market price differentials and for sub-lets to third parties.
BG Group purchased Premier Power in 1992 and converted Ballylumford power station to gas. The power station near Larne, has a potential maximum capacity of 1 316MW. The power station is gas-fired with dual-fuel capability and is owned and operated by Premier Power, a wholly owned subsidiary of BG Group. The 600MW CCGT plant was commissioned in 2003. Output from Premier Power is sold into the Irish Single Electricity market, both directly and via sales to NIE Energy, and in total satisfies around 9% of the island of Ireland’s demand and represents around 12% of installed Irish capacity.
Built in two phases, Seabank is a 1 130MW CCGT power station near Bristol. It is owned and operated by Seabank Power, a 50:50 joint venture between
BG Group and Scottish and Southern Energy. Phase 1 of Seabank (750 MW) entered full commercial operation in 2000 and Phase 2 (380MW) in 2001.