29th September 2010

Teesside Gas & Liquids Processing (TGLP), a subsidiary of Teesside Gas Processing Plant Limited, is pleased to announce that it has signed agreements with RWE Dea UK SNS Limited (RWE) and Sterling Resources (UK) Limited (Sterling) that will bring gas from the Breagh discovery to Teesside for processing.

The Breagh field, operated by RWE, is one of the North Sea’s largest gas discoveries in recent years and the project will involve the construction of a new offshore platform and pipeline to bring gas ashore at Coatham Sands, Redcar where it will be piped via a new onshore pipeline to the Teesside Gas Processing Plant, located at Seal Sands, for processing. Sales quality gas will be exported to either the National Transmission System or local industrial users, with natural gas liquids that are removed as part of the processing being delivered to local Teesside businesses.

Teesside based px Group, in its role as operator of the Teesside Gas Processing Plant and a provider of project management and development services, is working with TGLP and RWE to support the project and the future operation of the onshore facilities.

The overall timetable of the development has first gas being landed through the new infrastructure in mid 2012.

The Breagh gas field, owned by RWE (70% and operator) and Sterling (30%), is located in the southern North Sea on the Dogger Shelf around 100 km from Teesside.

Andy Heppel, Chief Executive with Teesside Gas Processing Plant Limited, said: “We look forward to working with the Breagh owners to develop this significant North Sea gas discovery. This is a very exciting project for our company as it connects this new and undeveloped area of the North Sea to Teesside and provides new gas and hydrocarbon feedstock to the UK and local industry further reinforcing Teesside’s position as a key strategic hub in the UK’s gas and hydrocarbon network. The project will also help to secure existing jobs and create local employment opportunities during the construction phase.”

Martin Green, Chief Operating Officer with px added: “We are very pleased to have been able to support both Teesside Gas Processing Plant Limited and the Breagh Owners to date in this project and look forward to continuing this support through the development phase and into operation.”