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
04 June 2007
BG Group finalises agreement to meet natural gas demand in Chile
BG Group today announced that it has signed an agreement to supply Chile's first
Liquefied Natural Gas (LNG) import terminal.
The 2.5 million tonnes per annum (mtpa) terminal in Quintero Bay - approximately
110 kilometres northwest of Santiago - will have the capacity to meet up to 40%
of the country's demand for natural gas. BG is a 40% shareholder in the
regasification terminal which is targeted to commence operation in the second
quarter of 2009.
BG executed the 21-year LNG sale and purchase agreement to supply Chile with 1.7
mtpa of LNG through the terminal, to be supplied from the company's global LNG
portfolio.
Rick Waddell, BG Executive Vice President, South America said:
"Chile has a vibrant and growing economy which needs new gas supplies and we are
ideally placed to work with our Chilean partners to meet that demand.
"The Quintero LNG project expands our South American operations and provides a
long-term counter-seasonal market for our LNG portfolio. We are delighted to
have finalised our investment and participation in Chile's first LNG import
terminal. "
Background
GNL Quintero SA (GNLQ) is the project company which will own and operate the
terminal. In addition to BG's 40% shareholding, the other partners in the
project are the Chilean national oil and gas company ENAP (20%), power company
Endesa Chile (20%) and gas distribution company Metrogas (20%).
GNLQ today also entered into agreements for the provision of regasification
services at the terminal and for the onward sale of the terminal's regasified
natural gas.
The US$775 million engineering, procurement and construction contracts have been
awarded to CB&I.
There are matters discussed in this news 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.
In the USA, BG LNG Services, LLC (BGLS) holds, until 2028, 100% of the capacity
rights at North America's largest operating LNG import terminal, Lake Charles in
Louisiana. BGLS also holds supply and regasification rights for 17 years at the
Elba Island LNG terminal near Savannah, Georgia.
BG has long-term purchase agreements in place with Equatorial Guinea LNG Train
1, S.A.; Nigeria LNG Ltd; Egyptian LNG Train 2; and with Atlantic LNG Train 4.
In the Middle East, BG is a shareholder in Egyptian LNG Trains 1 and 2 and a
third LNG train is under consideration. There is scope at the development site
for up to six trains.
BG Group is also the major project shareholder in two proposed regasification
terminals, the Dragon LNG import project in Milford Haven, Wales and the
Brindisi LNG import project in Brindisi, Italy.
Enquiries:
Communications: +44 (0) 118 929 2462
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: 04 June, 2007 By: ___Ben Mathews___
Ben Mathews
Company Secretary