BG Group Announces Phase II Completion of Trunkline LNG's Lake Charles Import Terminal Expansion.

HOUSTON -- BG LNG Services, LLC (BG), a wholly owned subsidiary of BG Group plc (NYSE:BRG), today announced that Trunkline LNG Company, a subsidiary of Southern Union Company (NYSE:SUG), has completed Phase II of the Lake Charles liquefied natural gas (LNG) terminal expansion project.

The expansion project provides for increased baseload send-out capacity from 1.2 billion cubic feet per day (bcf/d) to 1.8 bcf/d, with peaking capacity of 2.1 bcf/d. This is in addition to the terminal's storage capacity of 9.0 bcf.

The Phase II expansion also includes additional pumps, vaporizers and ship unloading facilities at the terminal's second dock.

In February 2004, BG announced its agreement with Trunkline for the second expansion of the Lake Charles terminal, in which BG has 100 percent of all firm capacity rights through 2028. The first expansion project (Phase I), completed in the third quarter of 2005, initially increased the terminal's baseload send-out capacity from 630 million standard cubic feet per day (mmscf/d) to1.2 bcf/d and added an additional storage tank that increased the terminal's storage capacity from 6.3 bcf to 9.0 bcf.

Martin Houston, BG Group executive vice president and managing director, North America, Caribbean and Global LNG, said:

"Meeting the increasing demands of the U.S. energy market requires a major expansion of LNG import capacity. The completion of this project at the country's largest operating LNG import terminal is an important milestone in the development of BG's LNG strategy. It helps secure our position as the leading low cost supplier of LNG to the United States and increases our capacity to meet the needs of our growing customer base."

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 plc 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. www.BG-Group.com

In the United States, BG LNG Services, LLC, (BGLS) holds 100 percent of the capacity rights at North America's largest operating LNG importation terminal, Lake Charles, LA, through 2028. On April 5, BG announced that it had entered into an agreement with Trunkline to upgrade the facility to allow the terminal to extract heavier hydrocarbons, such as butane, propane and ethane from the LNG, thus allowing the terminal to source LNG from a wide range of suppliers while meeting US pipeline specifications. The upgrade also provides for the installation of ambient air vaporization which uses the temperature of the air to warm the LNG and return it to its gaseous state, reducing fuel usage and air emissions. The project was filed with the US Federal Energy Regulatory Commission (FERC) for approval on March 31 2006. The terminal upgrade is expected to be completed in 2008.

In addition to its capacity holdings in the Lake Charles LNG terminal, BGLS currently holds supply and regasification rights of 446 mmscf/d at the Elba Island LNG terminal near Savannah, GA. Expansion work is expected to increase our throughput capacity to 1.17 bcf/d and storage from 4 bcf to 8.2 bcf.

Trunkline LNG Company

Trunkline LNG Company is a unit of Southern Union Company, which is one of the nation's leading diversified natural gas companies, engaged primarily in the transportation, storage, gathering, processing and distribution of natural gas. The company owns and operates the nation's second largest natural gas pipeline system with more than 22,000 miles of gathering and transportation pipelines and North America's largest liquefied natural gas import terminal.