download - BG Group

UK Downstream
BG Group’s UK Downstream activities encompass LNG
importation, energy marketing and power generation.
BG Group sells gas on a wholesale basis and exports gas
for sale to, and purchases gas for import from, mainland
Europe via the Interconnector. The Group owns interests
in two gas-fired power stations.
Areas of operation
New information
• Dragon LNG operational
Key dates
LARNE
Premier Power
BELFAST
IRISH SEA
Dragon LNG
Seabank
1997 Premier Power Limited converted
from oil to natural gas
2001 Seabank Phases 1 and 2 entered
full operation
2003 600 MW CCGT plant at Premier
Power completed
2007 Equity stake in Interconnector
(UK) Limited sold
ABERDEEN
TEESSIDE
UK
READING
CATS
EASINGTON
LANGELED
SEAL
BACTON
LONDON
Key to operations
Gas pipeline
0 200km
Shareholders Dragon LNG (%)
INTERCONNECTOR
ZEEBRUGGE
BG Group 50
PETRONAS 30
4Gas 20
DRAGON LNG
In third quarter 2009, the Dragon LNG import
terminal at Milford Haven in Wales became
operational, with the terminal receiving its
first commissioning cargo in July 2009.
Ownership of the terminal is BG Group 50%,
PETRONAS 30% and 4Gas 20% and there are
20-year arrangements in place governing
the use of capacity rights (BG Group 50%,
PETRONAS 50%), allowing BG Group and
PETRONAS to each send out up to 3 bcm
(106 bcf) gas per year, from around 2.2 mtpa
LNG. BG Group has contracted pipeline
capacity with National Grid. BG Group’s
intention is to use the Dragon terminal
capacity when UK prices are internationally
attractive, sourcing the LNG from its global
supply portfolio.
ENERGY MARKETING
In 2008, BG Group produced 5.2 bcm gas
from the UK Continental Shelf (UKCS), the
equivalent of approximately 6% of UK gas
demand. The Group sells gas on a wholesale
basis principally at the UK National Balancing
Point under contracts with varying durations.
BG Group is an active participant in the entry
capacity auctions held by National Grid and
in the on-the-day commodity market and
other electronic trading systems that help
shippers balance their supply and demand.
BG Group owns both import and export
capacity in the Interconnector pipeline,
which it uses to ship gas to take advantage
of market price differentials and for sub-lets
to third parties.
PREMIER POWER LIMITED
BG Group purchased Premier Power in 1992
and converted Ballylumford power station
to gas. The power station near Larne, has a
potential maximum capacity of 1 316 MW.
The power station is gas-fired with dual-fuel
capability and is owned and operated by
Premier Power, a wholly owned subsidiary
of BG Group. The 600 MW CCGT plant was
commissioned in 2003. Output from Premier
Power is sold into the Irish Single Electricity
market, both directly and via sales to NIE
Energy, and in total satisfies around 9% of
the island of Ireland’s demand and represents
around 12% of installed Irish capacity.
SEABANK POWER LIMITED
Built in two phases, Seabank is a 1 130 MW
CCGT power station near Bristol. It is owned
and operated by Seabank Power, a 50:50 joint
venture between BG Group and Scottish
and Southern Energy. Phase 1 of Seabank
(750 MW) entered full commercial operation
in 2000 and Phase 2 (380 MW) in 2001.
BG Group Data Book 2009
7
EUROPE AND CENTRAL ASIA