Dragon LNG Announces Successful Berthing of Methane Lydon Volney at its terminal in Waterston, Milford Haven

Milford Haven, 14 July 2009

Dragon LNG announced today that its new liquefied natural gas (LNG) importing and storage facility at Milford Haven is now accepting its first shipment of LNG from the Methane Lydon Volney. The cargo is being provided by BG Group. Her cargo of 145,000 cubic metres of LNG from Atlantic LNG in Trinidad will be used to commission the new terminal.

This first shipment will be followed over the next few weeks by further shipments to complete this process.

John Burley, General Manager of Dragon LNG, said, ‘I am delighted that our Dragon LNG importing and storage facility is now complete and about to become operational. This is the result of major international investment into the UK’s energy infrastructure by our three shareholders, BG Group, PETRONAS and 4Gas. I would like to thank all the companies who have been involved in this major project over the last four years and who have contributed to the success that Dragon LNG is today as we commission our new terminal.

‘Here at, Waterston, Milford Haven when we are operating at full capacity, we will be able to send out up to 6 billion cubic metres of gas per annum to the National Transmission System, accounting for up to 5% of current UK natural gas demand. The ability to import LNG is a significant component within the UK’s long term energy strategy and we look forward to helping to provide security of supply for gas customers throughout the country.’

Councillor John Allen-Mirehouse, Deputy Leader and Economic Development spokesman for Pembrokeshire County Council said, ‘This is yet another red-letter day for Pembrokeshire and the energy sector. This facility provides a major contribution to our community in terms of employment and economic activity. We look forward to a mutually beneficial relationship with Dragon LNG over the years to come.’

Stephen Crabb, MP for Preseli, Pembrokeshire, said ‘LNG is a vitally important component of the UK’s long term energy strategy. The achievement of Dragon’s first shipment is a credit to the dedicated hard work of the many people involved, and further demonstrates the importance of Pembrokeshire as a strategic energy hub.’

Ted Sangster, Chief Executive of Milford Haven Port Authority is delighted to be welcoming Dragon’s commissioning cargo, saying ‘The arrival of LNG this year has marked an important milestone. We have been working with Dragon, alongside Pembrokeshire County Council, the Health & Safety Executive, the Maritime and Coastguard Agency and other bodies, in preparing for the arrival of LNG. Dragon’s first ship further enforces Milford Haven’s strategic economic importance, and the growing reputation of the port as the UK’s energy hub.’

Notes to editors
Dragon LNG is a stand alone business financed by three industry shareholders, BG Group (50%), Petronas (30%) and 4Gas (20%).
BG and Petronas between them have contracted for the full capacity at Dragon LNG’s Milford Haven site over the next 20 years.

BG Group
BG Group plc (LSE: BG.L) is a world leader in natural gas, with a strategy focused on connecting competitively-priced resources to specific, high-value markets. Active in 27 countries on five continents, BG Group has a broad portfolio of exploration and production, Liquefied Natural Gas (LNG), transmission and distribution and power generation business interests. It combines a deep understanding of gas markets with a proven track record in finding and commercialising reserves. For further information visit: www.bg-group.com

PETRONAS
PETRONAS, short for Petroliam Nasional Berhad, is an integrated oil and gas multinational based in Kuala Lumpur, Malaysia. Owned by the Government of Malaysia, PETRONAS has strategic projects and operations in more than 30 countries worldwide. The company is the world’s third largest producer of LNG whose LNG business is supported by subsidiary MISC Berhad, currently the single largest owner-operator of LNG carriers in the world. For the year ended 31st March 2009, PETRONAS posted a net profit of US$15.3 billion on the back of US$77 billion in revenue. For further information visit: www.petronas.com.my

4Gas
4Gas is an independent company dedicated to developing and operating LNG import, regasification and storage terminals around the world. It is the world’s only independent company with a sole focus on LNG and a global footprint. Current 4Gas projects include Dragon LNG in Milford Haven, Wales; the LionGas project in Rotterdam, The Netherlands; the Pegaz LNG project near Bordeaux, France; the MapleLNG project at Nova Scotia, Canada; the Vista del Sol project in Corpus Christi, Texas, USA and the Mashal LNG project near Karachi, Pakistan. 4Gas has offices in Rotterdam (HQ), Houston, Halifax, Paris, Bordeaux, Milford Haven and Karachi.
For further information visit: www.4Gas.com

Photographs of the site can be found at www.dragonlng.co.uk