BG Group today announced it had successfully reached a key milestone in development of the Queensland Curtis LNG (QCLNG) project, with first gas transported from the Surat Basin coal seam gas fields onto Curtis Island where the liquefaction terminal is located.

Delivery of first gas onto the island marks the successful completion of a two-year task to lay more than 46 000 lengths of one-metre diameter steel pipe over 540 kilometres - the longest large-diameter buried pipeline in Australia.

Arrival of first gas onto the island enables commissioning work to begin on the first of two LNG production trains being developed by the Group as part of the integrated QCLNG project. This commissioning work is expected to begin in the first quarter of 2014.

Commenting on the milestone, BG Group Chief Executive Chris Finlayson said:

"To have first gas on Curtis Island in a little over three years from project sanction is an immense achievement. It is a testament to the expertise and dedication of everyone working on this vast and complex mega-project.

"Delivering this key milestone demonstrates the advanced stage of development at the world's first coal seam gas to LNG project. We are now entering the final construction and commissioning phases and we remain firmly on track to deliver first commercial LNG in the second half of 2014, as scheduled and within the $20.4 billion budget.

"We have overcome many challenges along the way, and we still have more hard work in front of us, but last February I set the tough target to have first gas on Curtis Island by the end of this year, and I am delighted that we have met it."

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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 2012. 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.

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