BG pens $8bn shale gas deal

City A.M. Reporter
BG GROUP will export liquefied natural gas from the US under a landmark $8bn (£5bn) deal with Cheniere Energy that will allow US producers to ship their shale gas supplies to the world for the first time.

The FTSE 100-listed group said it had agreed to buy 3.5m tonnes of liquefied natural gas (LNG) a year for 20 years from Sabine Pass, a subsidiary of Cheniere.

“It is the first agreement of its kind in this region and it secures us early access to the rapidly emerging commercial opportunities driven by the recent material increases in US gas reserves,” said BG chief executive Sir Frank Chapman.

Yesterday’s deal paves the way for Cheniere to secure financing for the the Sabine Pass project in Louisiana, which could be the first LNG export plant built in the US in nearly 50 years.

“If we start construction by next year then we could be exporting by 2015,” Cheniere chief Charif Souki said.

BG shares closed up 1.2 per cent.