Re Ofgem Review

RNS Number:4020T
International Energy Group Ld
18 December 2003

Enquiries:

Paul Fairclough, Chief Executive
Mike Richards, Finance Director
International Energy Group Limited                    01481 715634

Peter Otero, Financial Dynamics                       020 7269 7103



Date:                     18 December 2003


                     INTERNATIONAL ENERGY GROUP LIMITED
                   OFGEM REVIEW OF GAS TRANSPORTATION PRICING

International Energy Group Limited (IEG) announced today that its subsidiary the
Gas Transportation Company Limited (GTC) has agreed to the modifications to its
licence conditions necessary to introduce Relative Price Control (RPC) into its
UK gas transportation business.

The principal modifications to the licence conditions change the basis of
regulation from a reasonable profits test to a requirement for pricing to match
the Transco equivalent prices for transportation.

Paul Fairclough, Chief Executive, said "We have been in discussions with Ofgem
since the review was announced in May 2002 and are very pleased that they have
reached a satisfactory conclusion.  We have supported RPC throughout the
consultation process and believe it delivers fair and consistent pricing to gas
shippers and consumers, whilst allowing investors in the transportation market
to benefit from the efficient operation of their businesses against a background
of secure income streams.  We remain totally committed to our Gas Transportation
business in the UK and expect our new investments to continue at current levels
into the foreseeable future with only marginal extensions to the payback periods
currently being achieved."

GTC has contracts in place to provide gas transportation to 166,000 houses in
the UK, of which 107,000 are connected to date.

                                    - ENDS -


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