Trinidad & Tobago Approves Atlantic LNG Train 4 Expansion

BG Group welcomes the decision of the Government of the Republic of Trinidad and Tobago to approve construction of a fourth Atlantic Liquefied Natural Gas (LNG) train at Point Fortin, Trinidad.

Train 4, at an estimated cost of US$1.2 billion, is expected to be the largest LNG train ever constructed. The Train will require about 800 million standard cubic feet of gas per day and produce 5.2 million tons per annum (mtpa) of LNG. Together with its sister trains overall LNG production from Atlantic LNG should increase to over 15 mtpa.

All shareholders of Atlantic LNG including BG, BP, Repsol, National Gas Company of Trinidad and Tobago (NGC) and Tractebel have an option to participate in the ownership of Train 4. BG's shareholding will be no less than 26 percent. Significant progress has been made on all the associated agreements required for the project and these are expected to be finalized in the near future.

Peter Dranfield, President BG Trinidad and Tobago, said: "BG Group fully endorses this decision to build a fourth liquefied natural gas train. This decision enables the participating shareholders to continue in the success of Atlantic LNG's world-class facility and in the expansion of Trinidad & Tobago's LNG business. BG Group looks forward to working with the Government and partners to bring this project to fruition."

BG intends to supply its share of liquefaction capacity in Train 4 from its operated fields in the North Coast and East Coast Marine Areas. A development plan to use gas from NCMA and ECMA is awaiting approval from the Government. LNG produced from BG-gas supplied to Train 4 will be sold to BG LNG Services, a wholly owned subsidiary of BG Group, for onward sale into the US market via the Lake Charles terminal in Louisiana.

A Front End Engineering Design (FEED) study for Train 4 was completed in January 2002. The construction program will enable the plant to be operational by the first quarter of 2006.

The new train is planned to be situated south of and adjacent to Train 3, which was commissioned on 30 April 2003. A second jetty will be required and a fourth 160,000 cubic meter storage tank will be constructed and located west of Train 1.