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BG North America Purchases Dighton Power Plant

Posted on: Wednesday, 13 September 2006, 18:00 CDT

BG North America, a wholly owned subsidiary of BG Group plc (NYSE:BRG), today announced its purchase of 100 percent interest in the 170MW, gas-fired, Dighton Power Plant located in Bristol County, Massachusetts from Calpine Corporation. BG will pay $90.2 million for the assets of Dighton Power Associates and fund the acquisition through internal sources. The purchase has been approved by the bankruptcy court with closing expected to occur shortly after receiving Federal Energy Regulatory Commission (FERC) and Hart-Scott Rodino approvals.

The Dighton Power Plant is located in Bristol County, Massachusetts and supplies power into the ISO New England (ISO-NE), a well established, mature and liquid power market.

Executive Vice President and Managing Director of BG North America Caribbean and Global LNG, Martin Houston said:

"This acquisition is an important milestone for BG as it establishes our position in one of the world's largest power markets. Dighton provides us with a platform to leverage our significant LNG position in the United States. We are already a gas supplier to the northeast U.S. and this acquisition will now allow us to add power as part of our portfolio of energy services.

Power continues to be a strong driver of long-term gas demand and we are looking forward to the exciting possibilities that will come from the integration of the Dighton asset into our North American portfolio."

There are matters discussed in this media information 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 Dec. 31, 2005.

Notes to Editors:

BG Group

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.

BG Group develops, owns and operates gas-fired power generation plants in the following areas:

Europe and Central Asia

-- Ireland - Premier Power Limited - a wholly owned subsidiary of BG Group

-- UK - Seabank Power Limited - 50:50 joint venture with Scottish and Southern Energy

-- Italy - BG Group 33.68 percent interest in SERENE, a joint venture company

Asia Pacific

-- Malaysia - Genting Sanyen Power - BG has a 20 percent interest and holds a 21 year contract to sell power to the Malaysian national power company.

-- The Philippines - The Santa Rita Power Station is owned by First Gas Power Corporation (FGPC), a 100 percent subsidiary of First Gas Holdings Corporation (FGHC), in which BG Group has a 40 percent interest. The remaining percent of FGHC is owned by First Generation Holdings Corporation (First Generation), which is a subsidiary of First Philippines Holdings Corporation (FPHC). The San Lorenzo Power Station - BG Group, in partnership with Unified Holdings Corporation, a 100 percent subsidiary of First Generation, developed, financed and constructed the San Lorenzo power plant through a special purpose company FGP Corp, in which BG Group has a 40 percent interest and Unified Holdings Corporation has a 60 percent interest.

BG North America

In the United States, BG LNG Services LLC, (BGLS) holds, through 2028, 100 percent of the capacity rights at North America's largest operating LNG importation terminal, Lake Charles in Louisiana. This facility has the capability to receive, store, vaporise and deliver an average daily send out of 1.8 billion cubic feet per day (bcf/d).

Additionally, BGLS currently holds supply and regasification rights of 446 million standard cubic feet per day (mmscf/d) for 22 years at the Elba Island LNG terminal near Savannah, Georgia. Expansion work is expected to increase our throughput capacity to 1.17 bcf/d from 2012.

Source: Business Wire

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