BG Group Expands Atlantic Basin LNG Interests

BG Group's North Coast Marine Area (NCMA) Hibiscus field, off the north coast of Trinidad, has produced first gas into the newly commissioned Train 2 at Atlantic LNG. The Government of Trinidad & Tobago approved the Atlantic LNG Trains 2 and 3 expansion in February 2000 and the NCMA development in December 2000.

NCMA, one of the largest offshore developments in Trinidad & Tobago waters, is intended to supply all BG capacity in Train 2 for up to 20 years at 240 million standard cubic feet of gas per day (mmscfd).

BG is a 32.5 percent shareholder in the US $1.1 billion Atlantic two train expansion at Point Fortin, which is due to increase gross liquefied natural gas (LNG) production from 3.3 million tons per annum (mtpa) to 9.9 mtpa when Train 3 comes on-stream, scheduled for the second quarter of next year.

Martin Houston, Executive Vice President, BG Group plc, said: "BG Group's strategy to link indigenous reserves with world class projects has been realized with a new gas province offshore Trinidad, and one which underpins our shareholding in the Atlantic LNG expansion. Our progress in Trinidad & Tobago strengthens the Group's growing LNG position and our increasing exploration and production activities in the region."

In addition, BG and partner ChevronTexaco in the East Coast Marine Area (ECMA) have received approval from the Ministry of Energy and Energy Industries for development of the Dolphin Deep and Starfish fields for supply into Train 3. BG capacity in Train 3 is 125 mmscfd, which is planned to be supplied from NCMA for the first two years. Thereafter Train 3 is intended to be supplied from ECMA (80 mmscfd) and NCMA (45 mmscfd).

LNG production from BG capacity in Trains 2 and 3 will be sold to El Paso Merchant Energy under a long term contract for import into the Elba Island LNG receiving terminal in Georgia, USA. During 2002, LNG produced from Train 2 is intended for re-gasification at the Lake Charles importation terminal in Louisiana and sale into the US market. From January 1, this year, BG took control of 80 per cent of the capacity at Lake Charles, which has the capability to receive, store, vaporise and deliver an average daily send-out of 630 mmscfd.

Peter Dranfield, Vice President, BG Trinidad & Tobago, said: "Our growth in gas production offshore Trinidad & Tobago is planned to keep pace with the rapidly expanding liquefaction plant at Atlantic LNG which is set to become one of the world's largest liquefaction facilities. We very much look forward to commencement of production into Train 3 and a successful outcome to the current negotiations with the Government of the Republic of Trinidad and Tobago to allow the proposed 5.2 million ton Train 4 to be operational in late 2005. These announcements today reaffirm our growth in the Atlantic Basin LNG business."

Partners in Atlantic LNG 2/3 Company are BG T&T (32.5 percent), BP (42.5 percent) and Repsol (25 percent). The NCMA partnership comprises BG (Operator) 45.9 percent, Petrotrin 19.5 percent, Agip 17.3 percent and PetroCanada 17.3 percent.


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