BG Group and Southern Natural Gas Company Enter Agreement to Further Expand the Elba Island LNG Import Terminal.

HOUSTON -- BG LNG Services, LLC (BG) a wholly owned subsidiary of BG Group PLC (NYSE:BRG), today announced that it has entered into agreements with two wholly owned subsidiaries of El Paso Corporation to further expand the storage and throughput capacity at the Elba Island liquefied natural gas (LNG) terminal and to participate in a new interstate pipeline -- Elba Express. The expansion and new pipeline will benefit the southeastern U.S. by adding more LNG import capacity directly into the market area. Both projects will be filed with the U.S. Federal Energy Regulatory Commission (FERC) for approval in the third quarter of 2006.

The expansion of Elba Island will increase BG's storage capacity from 4.0 billion cubic feet (bcf) to 8.2 bcf and will increase BG's vaporization capacity from 675 million cubic feet per day (mmcfd) to 1.17 billion cubic feet per day. The expansion is expected to be completed before the end of 2012.

As part of the expansion project, BG also entered into an agreement with SNG for transportation capacity on the recently announced Elba Express Pipeline. This new 191-mile interstate natural gas pipeline will allow BG to deliver natural gas from Elba Island to additional markets in Georgia and, through interconnections with other pipelines, to the southeastern and eastern United States.

Martin Houston, BG executive vice president and managing director, North America, Caribbean and Global LNG, said, "The United States is one of our core markets and this agreement once again demonstrates BG's commitment to increasing LNG supply to the U.S. We have a clear market strategy which will continue to drive growth in our North American business."

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 31 December 2004.

Notes to Editors:

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.

In the USA, BG LNG Services, LLC, holds, through 2023, 100% of the capacity rights at North America's largest operating LNG importation terminal, Lake Charles in Louisiana. This has the capability to receive, store, vaporise and deliver an average daily send out of 1.2 billion cubic feet per day (bcfd). Expansion work is scheduled to increase the average send-out rate to 1.8 bcfd by mid-2006. Additionally, BGLS currently holds supply and regasification rights of 675 mmcfd for 22 years at the Elba Island LNG terminal near Savannah, Georgia. BG's website: www.bg-group.com