BG Group and Trunkline LNG Enter Agreement to Upgrade the Lake Charles Import Terminal.

HOUSTON -- BG LNG Services, LLC (BG), a wholly owned subsidiary of BG Group plc (NYSE:BRG), today announced it has entered into an agreement with Trunkline LNG Company, a wholly owned subsidiary of Southern Union Company (NYSE:SUG) to upgrade the Lake Charles liquefied natural gas (LNG) terminal and to extend its terminal services contract for an additional five years to 2028.

The facility upgrade, which is being constructed by Trunkline LNG, will allow the terminal to extract heavier hydrocarbons, such as butane, propane and ethane from the LNG, thus allowing the terminal to source LNG with a wide range of suppliers while meeting US pipeline specifications. The upgrade will also provide 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. The terminal upgrade is expected to be completed in 2008.

The extension of the contract for the long-term entry capacity guarantees that BG will have rights to 100% of the terminal's existing capacity. BG's current rights provide for 1.2 billion cubic feet per day (bcf/d) of send-out capacity, which is being expanded to 1.8 bcf/d, with peaking capacity of 2.1 bcf/d and will be ready during the second quarter of 2006. This is in addition to BG's storage capacity of 9.0 bcf.

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 project provides BG with the option of supplying the market from a wider variety of LNG sources, thus increasing not only long term supply reliability for our downstream customers, but also increased flexibility for the world's LNG sellers."

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 2005.

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 2028, 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 (bcf/d). Expansion work is scheduled to increase the average send-out rate to 1.8 bcf/d by mid-2006.

Additionally, BGLS currently holds supply and regasification rights of 675 mmscf/d for 22 years at the Elba Island LNG terminal near Savannah, Georgia. Expansion work is expected increase throughput capacity from 675 mmscf/d to1.2 bcf/d and storage from 4 bcf to 8.2 bcf.