FORM 6-K
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Report of Foreign Issuer
Pursuant to Rule 13a-16 or 15d-16
of the Securities Exchange Act of 1934
For the month of June
BG Group plc
100 Thames Valley Park Drive
Reading RG6 1PT
ENGLAND
(Address of principal executive offices)
The registrant files annual reports under cover of Form 20-F. By furnishing
the information contained in this Form the reigistrant is not also furnishing
the information to the Commission pursuant to Rule 12g3-2(b) under the
Securities Exchange Act of 1934.
News Release
1 June 2007
BG Group and partners agree terms of Karachaganak Gas Sales Agreement
BG Group and partners today agreed the terms of the Phase III Karachaganak Gas
Sales Agreement (GSA) with KazRosGaz, a joint venture between Gazprom and
KazMunaiGaz.
The agreement, which is subject to approvals, sets out the commercial terms
governing the sale of gas over a 15 year period commencing during the fourth
quarter of 2007. Volumes under the agreement will increase to 16 billion cubic
metres per annum (bcma) following completion of the US$8 billion Karachaganak
Phase III expansion, which is expected onstream in 2012.
Mark Carne, BG Group Executive Vice President, Europe and Central Asia said:
"This agreement is a significant milestone in the continued development of the
giant Karachaganak field in Kazakhstan and represents the commercialisation of
over 7 trillion cubic feet of gas. It secures enhanced value for the
Karachaganak partners and the Republic of Kazakhstan. Additional gas sales
resulting from the expansion will also enable the venture to increase liquids
production for export to high value western markets."
Background
The Karachaganak Phase III expansion project is due to be sanctioned in 2008 and
will see gas and liquids sales increase to 16 bcma and 16.5 million tonnes per
annum (mtpa) respectively. Currently 8 bcma of untreated Karachaganak gas is
exported to the Orenburg processing facility in Russia. The expansion of the
Orenburg facility to accommodate the increased volumes as a result of Phase III
will be completed by the KazRosGaz joint venture.
There are matters discussed in this press release that are forward looking
statements. Such statements are only predictions and actual events or results
may differ materially. For a discussion of important factors which could cause
actual results to differ from the forward looking statements, refer to the
Company's annual report and accounts for the year ended 31 December 2006. The
Company does not undertake any obligation to update publicly, or revise, forward
looking statements, whether as a result of new information, future events or
otherwise, except to the extent legally required.
Notes to Editors:
BG Group plc is a global natural gas business. Active on five continents in 25
countries, it operates four business segments - Exploration and Production, LNG,
Transmission and Distribution and Power.
BG Group has been active in Kazakhstan for more than a decade. It is the joint
operator of the Karachaganak gas condensate field in north-west Kazakhstan in
which it owns a 32.5 per cent interest. Karachaganak holds estimated gross
reserves of over 2.4 billion barrels condensate and 48 trillion cubic feet of
gas. The company also holds a 2 per cent interest in the Caspian Pipeline
Consortium oil pipeline which transports oil from western Kazakhstan to the
Black Sea.
Enquiries:
Communications: +44 (0) 118 929 3717
Out of hours media mobile: +44 (0) 791 718 5707
Investor Relations: +44 (0) 118 929 3025
Website: www.bg-group.com
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.
BG Group plc
Date: 01 June, 2007 By: ___Ben Mathews___
Ben Mathews
Company Secretary