Capitalising on Uncertainties LNG Gets Firmer Footing in Europe

Despite the uncertainties related to the Energy Secretary position to be filled after Liberal Democrats’ defeat in Thursday’s elections, the LNG industry does not move an inch. The resource will not pay the price - nobody is anymore doubting about LNG’s potentials. 

It comes as no surprise that BG Group said on Friday that LNG registered good progress despite some glitches in Egypt and the impact of lower oil prices. 

‘In the LNG segment, delivered volumes were 56% higher with 21 additional cargoes including seven from QCLNG, eight additional spot purchases and six more from our long-term supply contracts.LNG revenues were 13% higher at $2.2 billion reflecting the increase in volumes and weather related gains in our North American gas marketing business, largely offset by the impact of lower LNG sales prices’ BG’s Chief Executive Helge Lund commented on Friday. 

That translated into an increase in profit outlook. 

Against this backdrop, BG confirmed it is content with Shell's $70 billion takeover, underlining that the combined company will capitalise on joint LNG shipping and marketing activities.

“The value offered by Shell is also attractive as it accelerates the delivery of value from our strategy, while removing many of the potential risks” he argued, reminding that the deal is not expected to complete until early 2016.

LNG is getting a firmer footing also elsewhere. According to Azernews, Iran’s Oil Minister Bijan Namdar Zanganeh said that LNG is an option for Iran’s gas export to the EU.