LNG Big Earner for BG

The UK-based BG Group has today posted a 19 per cent increase in profits for 2011 on the back of a massive increase in LNG and exploration and production revenues.

The increase sees BG Group's overall profit rise by $1.28 billion for last year, with greater profit expected from LNG for next year. Chief Executive of BG Group Sir Frank Chapman said that the group would be increasing its profit guidance on LNG by over 30 per cent to between $2.6 and $2.8 billion next year.

"The outlook for global gas and LNG demand is strong. BG Group is well set to capitalise on these opportunities and is making good progress with delivering its plans," he said.

"Not only is our LNG supply set to exceed our 2015 target of 20 million tonnes per annum (mtpa), but we believe that a BG Group supply portfolio of 30 mtpa by 2020 is now within reach. The near-term picture is also very positive and we are raising our LNG profit guidance for 2012 by over 30 per cent to between $2.6 and $2.8 billion. Our LNG business is set fair with the prospect of excellent profit momentum for many years."

The company also expects to increase production next year, with new projects coming onstream in the UK, Norway, Bolivia, Egypt and Thailand. With these additions, BG Group expects daily production to rise from 650,000 barrels of oil equivalent per day (boepd) to 750,000. 

"Key factors will be improved production from the UK, alongside six new projects coming onstream progressively through the year," Sir Frank said. 

BG Group will also invest an additional $1.5 billion into its exploration activities in seven countries.