7th Apr 2014 08:07
LONDON (Alliance News) - BG Group PLC Monday said it has moved the centre of its global liquefied natural gas and oil marketing business to Singapore from its head office in the UK.
The major oil and gas company said it is moving to Singapore in order to take advantage of the development of Asian energy markets in the long term.
"Asia is the world's largest market for LNG and where BG Group already sends the majority of its cargoes," said President for Global LNG and Oil Marketing Steve Hill, who has also relocated to the city-state.
"By moving the centre of our global LNG and oil marketing business to Singapore, the heart of the fastest growing LNG region, we are closer to many more of our existing customers and are better positioned to develop new and deeper relationships in the region," Hill added.
The company said the global natural gas market is set to grow at an average of 2.4% a year until 2025, largely driven by strong growth in demand from Asia, while global LNG is expected to grow twice as fast.
BG Group said it expects a steep increase in its LNG supply base as new projects start, including its major 8 million tonnes per year Australian Queensland Curtis LNG project, where first LNG is expected in the fourth quarter and another 5.5 million tonnes per year will be added from the US Sabine Pass terminal when it starts production in the near term.
The company has been providing LNG in Singapore since a major deal was penned in 2008, making the company the sole supplier of the first three million tonnes per year of LNG to be used in the country.
BG Group said it now employs over 70 people in its Singapore office and said it supports Singapore's vision of becoming an energy supply hub for the whole region.
The news comes weeks after the company announced two new high-pressure high-temperature projects in the UK North Sea and that it had secured a new exploration opportunity after being awarded new exploration acreage offshore Myanmar.
BG Group shares were up 0.1% to 1,137.50 pence in early trading Monday.
By Tom McIvor; [email protected]; @TomMcIvor1
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