BG Group Signs Long Term US LNG Purchase Pact
October 26 2011 - 8:37AM
Dow Jones News
BG Group PLC (BG.LN), the natural gas firm, announced Wednesday
that it has signed a fully-termed sale and purchase agreement with
Sabine Pass Liquefaction, LLC, a subsidiary of Cheniere Energy
Partners, L.P., for the purchase of 3.5 million tons per annum, or
mtpa, of liquefied natural gas over a 20-year period from the
Sabine Pass LNG terminal located in Louisiana.
MAIN FACTS:
-The agreement, which is subject to certain conditions and
approvals, is the first long-term LNG purchase agreement from a
project on the U.S. Gulf Coast, allowing BG Group to secure LNG
volumes for export from the U.S. to international gas markets.
-LNG exports are expected to commence as early as 2015.
-Construction of the liquefaction facilities at Sabine Pass is
expected to commence in 2012, with the initial phase to consist of
two trains capable of producing up to 9 mtpa of LNG.
-BG Group is not an investor in the proposed liquefaction
facilities.
-Group is continuing to pursue an expansion of the Lake Charles
LNG terminal, located in Louisiana, to provide natural gas
liquefaction services.
-Authorization has been received from the U.S. Department of
Energy, or DOE, to export up to 730 Bcf of natural gas per year
from the Lake Charles LNG terminal to countries that have a free
trade agreement in place with the U.S..
-The DOE is currently reviewing an application to export natural
gas from the Lake Charles LNG terminal to countries that do not
have a free trade agreement with the U.S..
-Shares at 1203 GMT down 0.54% at GBP13.705 valuing the company
at GBP46.758 billion.
-By Jana Weigand, Dow Jones Newswires; 44-20-7842-9314;
jana.weigand@dowjones.com
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