BG Group eyes higher output despite setbacks in shale gas
BRITISH gas producer BG Group said it expects to grow production at seven per cent per year to 2020, even as weak US gas prices force it to scale back its shale gas drilling activity by 80 per cent.
BG also gave a buoyant outlook for its liquefied natural gas (LNG) sales division yesterday, as it outlined a 40 per cent rise in underlying profit on the back of higher oil and LNG prices.
BG, which is based in Reading, said fourth-quarter earnings were $1.48bn (£934m) against a consensus forecast of $1.11bn.
It added that appraisal work showed its new discoveries offshore Tanzania contained three trillion cubic feet of resources, supporting hopes that the East African region could emerge as a major LNG hub, after other companies announced big finds in Mozambique.
Meanwhile capital expenditure would increase from $8bn last year to around $11bn this year, BG said.
Chief executive Sir Frank Chapman said: “In a changing and challenging operational, economic and political environment, I believe these are a good set of results.”
BG lifted its full year dividend 10 per cent.