Energy group BG puts two power plants up for sale

BRITISH gas producer BG Group is understood to be preparing a retreat from the UK power sector by putting its power plants up for sale.

Bidders are believed to have lodged first-round offers last week for two power stations put up for sale by the FTSE 100-quoted company.

BG’s Ballylumford plant in Northern Ireland is expected to fetch £300m while the group’s 50 per cent stake in the Seabank plant in Bristol could make £150m.

Bidders are thought to include Japanese firms, while rival UK business Scottish and Southern Energy has pre-emption rights over Seabank.

BG Group recently defended its chief executive Frank Chapman’s £28m pay package ahead of a vote on remuneration by shareholders at its annual shareholder meeting next month.

Although his basic salary and bonus came to £2.7m, the bulk of Chapman’s haul came from vesting £15.5m of paper options accrued over a decade.