UK based BG Group will sell its 40% interests in Santa Rita and San Lorenzo combined-cycle gas-fired power plants in the Philippines to Korea Electric Power Corporation for a net consideration of approximately $400m.

The net consideration is subject to standard completion adjustments, including interest to be paid to BG upon closing, which is expected in the first quarter of 2011.

The Santa Rita and San Lorenzo power stations, both located on the island of Luzon, have a power generating capacity of 1,000MW and 500MW, respectively.

The Santa Rita facility entered into operation in 2000 while the San Lorenzo plant entered into commercial operation in 2002.

Closing of the transaction is subject to receiving necessary waivers and consents from non-recourse lenders and First Philippine Holdings Corporation, which holds remaining interests in the power plants.