BG Group has been transformed from an offshoot of a former nationalised utility into an international energy business focused on exploration and production and LNG.
Since 1997, when the company was formed, our total resource base has jumped from 3.6 billion barrels of oil equivalent (boe) to around 18 billion boe*.
Today, we have more than 5 200 employees and operations in more than 20 countries and are ranked among the 15 largest companies listed on the London Stock Exchange.
Our global gas experience dates back to the 1950s. A forerunner to BG Group, the UK’s Gas Council began looking at LNG as a potential replacement for manufactured gas.
In 1959, a pioneering voyage took place, transporting LNG from Lake Charles in the US to Canvey Island by a converted naval vessel, the Methane Pioneer. Among those on board was Sir Denis Rooke, who went on to become Chairman of British Gas.
This experiment paved the way for the world’s first LNG export scheme: a 15-year contract with Algeria to supply just under 1 million tonnes per annum to the UK.
This foresight and innovation demonstrated over half a century ago by the Gas Council is still part of our DNA and critical to the on-going success and future of BG Group.
The Gas Council became British Gas, which was privatised in 1986, before being split a decade later into separate and distinct businesses, including BG Group.
In 1997, British Gas demerged into two separately listed companies:
BG plc, which took charge of the exploration and production, and international downstream operations of British Gas, as well as the British transmission and distribution business (Transco); and
Centrica plc, which took over the British retail business of the former British Gas.
In 2000, there was another demerger, in which two new companies were formed: BG Group plc and Lattice Group plc, with the latter inheriting the Transco business.
Following the second demerger, BG Group grew strongly and developed a portfolio of high-quality assets across the gas chain, including Egypt, Trinidad and Tobago, and Kazakhstan, as well as the UK North Sea.
Increasingly, though, we have focused on developing two highly distinctive capabilities: a world-class exploration business and our unique LNG model. These core strengths, facilitated by our commercial agility, remain fundamental to our strategy.
* From 2013, BG Group is adopting the Petroleum Resources Management System published by the Society of Petroleum Engineers (SPE-PRMS) for reserves reporting. Reserves (proved and probable) as at 31 December 2013 are shown under SPE-PRMS, together with the estimates under SEC definitions which was the previous basis for measurement.