BG Group to own 100% of Brindisi LNG SPA

BG Group has agreed to acquire Enel SPA's interest in Brindisi LNG SPA, which is building an 8 billion cu m/year LNG regasification terminal on Italy's southeastern coast. The transaction will give BG 100% ownership of Brindisi.

June 21, 2005

By OGJ editors
HOUSTON, June 21 -- BG Group has agreed to acquire Enel SPA's interest in Brindisi LNG SPA, which is building an 8 billion cu m/year LNG regasification terminal on Italy's southeastern coast. The transaction will give BG 100% ownership of Brindisi.

BG will assume Enel's interest for €17 million plus a deferred, contingent sum of €27 million. BG said it expects the transaction to be complete by late June.

The agreement negates BG's agreement to sell 3.2 billion cu m of LNG to Enel, which was conditional on Enel's Brindisi participation. BG will market that supply in Italy.

A consortium led by Tecnimont SPA has begun site work on the terminal, which is scheduled to begin operations in second half 2008 (OGJ Online, Jan. 24, 2005).