BG Group offloads stake in Filipino power plants

Natural gas giant BG Group is to sell its stake in to gas-fired power generation plants in the Philippines as part of its planned release of five billion dollars of capital.

The company has reached a sale and purchase agreement with its partner in the facilities, First Gen Corporation, which covers the 1,000 megawatt Santi Rita and 500 megawatt San Lorenzo power plants, both on the island of Luzon.

The 40% equity interest in the two plants will be sold for net cash proceeds of $360m.

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"The sale of our interest in these power generation plants in the Philippines is another step to realising the planned release of $5 billion of capital in the next two years. This deal, along with strategic divestments already announced this year, will release some $3.6 billion from BG Group's balance sheet," said Chief Executive Frank Chapman.

BG announced yesterday that it would sell its 60.1% stake in Brazilian gas distributor Comgs for around $1.7bn as part of its divestment programme.

BC