Joint Venture Company

Scottish & Southern Energy PLC 18 January 2001 SEABANK POWER COMPLETES SECOND PHASE Seabank Power Limited, a 50:50 joint venture between BG Group plc and Scottish and Southern Energy plc, today took over full commercial operation of the 1,140 megawatts combined-cycle gas turbine (CCGT) power station at Hallen, near Bristol. Construction of the £435 million development began in January 1996 and was carried out in two phases. The first, which included remediation of a brown field site, was formally handed over to the shareholders in March 2000. It has the capacity to generate 755 MW of electricity. Phase two, with a capacity of 385 MW, was started in January 1999 and has been delivered to Seabank Power on budget and to schedule. Jon Wormley, Executive Vice President, BG Group said: 'Through this investment BG Group has been able to jointly develop a first rate power station and forge a strong partnership co-operation. Seabank is a demonstration of an integrated gas play, utilising our capabilities from across our key business segments, and strategically creating linkages between our upstream interests and downstream investments.' Dr James Martin, Generation Director of Scottish and Southern Energy, added: 'The addition of the output of Seabank, operating to efficiencies over 57%, to our portfolio reinforces Scottish and Southern Energy as the operator of the youngest, most flexible, most efficient and environmentally of the major generators. Following the repowering of our Peterhead Power Station on time and on budget, the delivery of Phase II at Seabank in similar vein is no mean achievement and a credit to the teams involved.' Nigel Shaw, Chairman of Seabank Power Limited, concluded: Seabank Power has realised a huge milestone with the delivery of this project. We have seen Phase I come to fruition and operate efficiently whilst the speed of Phase II construction, taking two years, has been remarkable. The Power Station is now one of the UK's most efficient and an environmental leader in its class.' The station was built by Siemens plc on 40 acres of a former gasworks site. An additional surrounding area of 40 acres has also been landscaped. Three Siemens V94.3A gas turbines utilise state-of-the-art technology which operate with efficiencies approaching 60 per cent compared to 35 per cent for conventional power stations. Natural gas to the power plant, provided by Scottish and Southern Energy (SSE), is sourced via a specially constructed 26 kilometres 42-inch underground pipeline which links to the national gas network at Pucklechurch, Bristol. A gas compressor station, using two 2.5 MVA electrically driven compressors, is located at this site and is capable of packing gas to pressures in excess of 70 bar. BG Group, via a subsidiary company, BG Exploration and Production Limited is supplying gas to SSE under an eight-year gas sales agreement. Total electricity output from the power plant is contracted under separate arrangements to SSE and sold into the marketplace. The site is connected to the national electricity grid via a 400,000 volt (400kV) substation. The plant's total generating capacity is sufficient to supply the City of Bristol and surrounding areas. At peak construction times, the project development employed in excess of 1,000 employees. The station is currently employing 55 staff. Notes to Editors 1. BG Group plc wholly owns and operates the 1,057 MW Ballylumford Power Station in Northern Ireland, which generates over half of the Province's energy needs. It has a 40 per cent interest in the Santa Rita 1,000 MW power plant in the Philippines and is currently developing an adjacent 500 MW plant. In addition, it has a 20 per cent shareholding in Genting Sanyen Power, one of Malaysia's main power stations, and has power generation interests in Italy. 2. Scottish and Southern Energy plc will have over 7000 MW by 2002 from its own generation or on long term contract. It is the largest generator of renewable energy in the UK. The company is the largest network asset operator in the UK and has 4 million electricity and 1 million gas customers. For further information ring the SSE Press Office on 0870 9000410 or BG on 0118 929 3110.

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