BG Group - QCLNG Fact Sheet
All figures gross unless otherwise stated
Costs
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BG Group net* capex Phase 1: $20.4 billion: c50% Upstream E&P, c50% Upstream
Liquefaction
30% of $20.4 billion related to Common Facilities (Pipeline, plus jetty and LNG tanks –
all included in Upstream Liquefaction segment)
BG Group net** capex Phase 2 (all Upstream E&P): $1.0-1.5 billion per annum on
plateau until c2020, reducing thereafter
Upstream E&P opex: c$10/boe including royalties, excluding third party gas
Upstream Liquefaction opex: BG Group net c$150 million per annum
Accounting
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Revenue to profit and loss from first LNG cargo
DD&A on Train 1 and Common Facilities from first T1 LNG
DD&A on Train 2 from first T2 LNG
Upstream E&P wells DD&A on unit of production based on 2P reserves
All remaining DD&A on straight line basis
 30 year Upstream E&P Infrastructure (Gas gathering, WTPs, FCSs, CPPs)
 40 years Upstream Liquefaction (Pipeline, Liquefaction plants, Common facilities)
10% royalty on value at well head
30% corporation tax. BG Group has brought forward tax allowances
Operational
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Two 4.25 mtpa trains. Total 8.5 mtpa capacity
Expected throughput on plateau 8.0 mtpa
1.3 bcfd gas production (including domestic) at plateau
12-14% gas lost/used for compression, transport and fuelling LNG plant
Timescales
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First LNG December 2014
Train 1 six month ramp up
Train 2 start up in third quarter of 2015
Train 2 six month ramp up
Two train plant fully on plateau by mid-2016
Commercial
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Third party gas to manage ramp profile
Up to 20% third party gas in any one year during ramp period
LNG sold into BG Group portfolio. Strong portfolio of sales contracts into high value
Asian markets
LNG sales contracts generally follow an S curve. This offers some protection in low
commodity prices, whilst giving up some of the upside in high commodity prices.
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Reserves and resources
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9.2 tcf reserves
Further 13.1 tcf project resources
0.5 tcf annual gas requirement
Ownership and structure
BG Group
Ownership (%)
Rates of
Return (%)
Upstream Equity Gas
73.75
Netback, dependent
on oil price
Upstream Infrastructure
73.75
Fixed RROR
Tolling fee less DD&A and corporation tax
Pipeline
Held for sale. Expect
to complete H1 2015
Fixed RROR
Tolling fee less DD&A and corporation tax
Train 1
50.00
Fixed RROR
LNG FOB less cost of gas, common facilities and
pipeline tolling fees, opex, DD&A and corporation tax
Train 2
97.50
Fixed RROR
LNG FOB less cost of gas, common facilities and
pipeline tolling fees, opex, DD&A and corporation tax
Common Facilities
100.00
Fixed RROR
Tolling fee less DD&A and corporation tax
*
Profit Equals
Upstream netback less upstream infrastructure tolling
fee, upstream wellhead royalty, opex, DD&A and
corporation tax
BG Group net as per ownership structure when guidance was provided in May 2012.
** BG Group net as per current ownership structure.
-ends-
Notes to Editors:
BG Group plc (LSE: BG.L) is a world leader in natural gas, with a broad portfolio of business
interests focused on exploration and production and liquefied natural gas. Active in more
than 20 countries on five continents, BG Group 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
There are matters set out within this announcement 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 these forward-looking statements, refer to BG
Group’s Annual Report and Accounts for the year ended 31 December 2013. BG Group does not undertake any obligation to update publicly, or revise,
forward-looking statements, whether as a result of new information, future events or otherwise, except to the extent legally required.
Contacts:
Investors
Mark Lidiard:
Siobhan Andrews:
Angus Barry:
Ian Wood:
Investor Relations:
+44 (0) 118 929 2079
+44 (0) 118 929 3171
+44 (0) 118 929 2997
+44 (0) 118 929 3829
+44 (0) 118 929 3025
Media
Lachlan Johnston:
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Out of Hours Media Mobile:
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+44 (0) 118 938 6568
+44 (0) 7917 185 707
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