BG Group to Assume 100% of Brindisi LNG SpA
BG Group has agreed to acquire sole ownership of Brindisi LNG SpA, the company developing the 8 billion cubic meter per annum (bcma) LNG regasification terminal on the south east coast of Italy. BG Group is acquiring the additional interest from Enel for a cash consideration of (Euro)17 million, plus a deferred, contingent sum of approximately (Euro)27 million. Completion of the transfer of Enel's shareholding is expected to take place by the end of June.
The sale of 3.2 bcma of LNG by BG Group to Enel was conditional on Enel's participation in the Brindisi regasification terminal and this agreement now falls away. This supply reverts to BG Group and is available to be marketed in Italy through the Group's enhanced regasification capacity position.
Speaking today, BG Group Executive Vice President for the Mediterranean Basin and Africa, Stuart Fysh said: 'Brindisi LNG, which is part of BG's Atlantic Basin strategy, will bring major new investment to southern Italy. It will deliver a new and competitive energy supply to Italy and will also bring significant development to the economy of the region.'
BG Group is encouraged by the strong support of the Italian Government. Site works have begun at the Brindisi LNG terminal, which is scheduled to commence operations in the second half of 2008.
BG Group has been operating in Italy for over ten years and is active in the Exploration & Production and Power Generation sectors. To date, the Group has invested about (Euro)180 million in the country's energy sector. With Italian partners, BG Italia operates eight of the 14 exploration permits and applications in which it participates in the Po Valley and the Sicily Channel. BG Italia is a shareholder in Serene S.p.A., a joint venture company, which owns and operates approximately 400 megawatts of co-generation units located in five sites adjacent to Fiat Auto factories.
BG Group is a global natural gas business. Active on five continents in over 20 countries, it operates four business segments - Exploration and Production, LNG, Transmission and Distribution and Power.
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