What are your views on the UK Energy Review 2006?
Please visit our ‘Energy Policy’ page to read our BG submission to the Energy Review.
What is BG Group's involvement in and attitude towards the UK Continental Shelf?
With interests in over 20 UK Continental Shelf (UKCS) fields, BG Group has one of the most significant exploration and production businesses in the offshore waters of the UK. On the UKCS, BG Group operates the Armada fields (Fleming, Drake and Hawkins), the Maria field and the Seymour field in the central North Sea, the Blake and Atlantic fields in the Outer Moray Firth, and the Neptune, Mercury, Minerva and Apollo fields in the Easington Catchment Area (ECA) in the southern North Sea.
BG Group believes there is significant remaining potential in the UKCS and is actively pursuing opportunities both around infrastructure hubs and by extending out from existing core areas.
In addition to the core production hubs and exploration and appraisal interests on the UKCS, BG Group has a 51.18% interest in the Central Area Transmission System (CATS) offshore pipeline and onshore processing facilities, and a 7.86% stake in the Shearwater Elgin Area Line (SEAL).
What are BG Group's activities on the Norwegian continental Shelf?
BG Group entered Norway in 2004 with the award of PL297 in the North Sea. The Group now has 23 licences (13 as operator) gained through licensing rounds and acquisitions. The acreage lies in four core areas and in some cases was gained as a result of the Group’s experience and expertise across the border in the UK. BG Group expects to drill its first operated wells in 2007.
What are the details of BG Group's activities at Milford Haven, Wales?
BG has a 50% interest in the Dragon Liquefied Natural Gas (LNG) import terminal in Milford Haven. Dragon LNG has been formed to construct, own and operate the terminal, which will be capable of importing 5% of the UK's natural gas needs. BG will be able to use the facility to import natural gas from its portfolio of supplies from around the World. The project is now 50% through its construction window and on schedule to be operational in Q4 2007. The outer walls and roofs of the two storage tanks have been completed.
During the construction period, the workforce is projected to peak at 400, with up to 70% coming from the travel to work area. In addition to this investment in the local economy, Dragon LNG has awarded many contracts to local firms with in excess of £30m of contracts going to two local companies. During the operations phase, Dragon LNG is expected to have 35-40 employees, the numbers are currently being finalised. The recruitment and training of this team will start in Q2 2006 with the emphasis on local recruitment.
Dragon LNG is focused on the impact on the community both during the construction and the operations phases of the business. Dragon LNG is working hard to help improve the understanding about LNG and its excellent safety record. During the last 60 years, BG is not aware of any incident at an LNG import terminal that has affected members of the public. During the same period, no LNG has been lost from the containment tanks of an LNG ship during 40,000 voyages. As part of a package of measures to limit the impact of construction on the local community, Dragon LNG has reopened an old rail link. This rail link has allowed Dragon LNG to take over 4,000 heavy goods vehicle movements off the road and away from the local village.
For further information on Dragon LNG, please feel free to the General Manager or Community Affairs Manager of Dragon LNG directly on 01646 691730.
What are BG Group's UK downstream interests?
BG Group’s NW Europe Downstream activities encompass power generation, gas transmission and energy marketing. The Group is also jointly developing a LNG import and regasification facility at Milford Haven, Wales.
After purchasing Premier Power in 1992, BG Group converted the plant to gas, which supported the development of the gas interconnector from Scotland to Northern Ireland.
Elsewhere in the NW Europe region, BG Group has a stake in the Seabank power station and in the UK-Continent Interconnector pipeline. BG Group sells gas on a wholesale basis at beach terminals and ships gas to the UK National Balancing Point. Sales are under short-, medium- and long-term contracts. BG Group also exports gas for sale to and purchases gas for import from mainland Europe, via the Interconnector.
What is your share of the Interconnector?
BG Group has a 25% shareholding in Interconnector (UK) Limited, which developed the pipeline that links the UK and Continental European gas transmission systems. All the capacity in the Interconnector has been sold on long-term contracts until 2018. Interconnector (UK) Limited manages and operates the asset for its shippers and shareholders.
The pipeline, which runs from Bacton in England to Zeebrugge in Belgium, has been fully operational since October 1998.
Up to 745 bcf (20 normal bcm) natural gas per year can be transported from the UK through the 230 km 40-inch diameter sub-sea pipeline to a reception terminal at Zeebrugge and then into the Continental European grid. In addition, the pipeline’s Phase 1 reverse flow import capacity expansion from 317 bcf (8.5 normal bcm) to 615 bcf (16.5 normal bcm) became operational on 8 November 2005. The second phase, designed to boost the UK import capacity to 876 bcf (23.5 normal bcm), is expected to be available from December 2006. BG Group uses its own capacity for long-, medium and shorter-term sub-lets to third parties and also ships gas to take advantage of market price differentials between the ends of the pipeline. Interconnector (UK) Limited is contemplating a further expansion to increase import capacity by around 75 bcf (2 normal bcm) to around 24.2 bcf (25.5 normal bcm), which could be available before the end of 2007.
Is BG Group still involved with the Microgen project?
Microgen was an innovative micro combined heat and power unit that reduces both energy consumption and harmful emissions, compared to conventional boilers. Like a conventional boiler, the home energy system produced heat and hot water. Unlike a conventional boiler, it simultaneously produced electricity for use around the home.
Although Microgen, a 100% subsidiary of BG Group, successfully tested the unit, the company was unable to produce the units at a price that would have made them capable of reaching a mass market. In mid-2006, BG Group began a search for a volume manufacturing partner capable of reducing costs significantly and making the product viable. Despite a global search, we found no suitable partners. As a result, we were obliged to close the business in February of this year.
BG Group is still supportive of the concept of microgeneration and believes it could contribute to the battle against global warming. However, the Microgen unit in its latest form is not in our view capable of making the breakthrough required in the microgeneration market.
B G G roup entered Norway in 2004 with the award of PL297 in the North Sea . The G roup now has 23 licences (13 as operator) gained through licensing rounds and acquisitions. The acreage lies in four core areas and in some cases was gained as a result of the G roup
