Group at a glance
BG Group is engaged in the exploration, development, production, transmission, distribution and supply of natural gas. The Group also has a number of power generation business interests. Gas reserves often require complex chains of physical infrastructure and commercial agreements to deliver the gas to markets. BG Group has proven skills and experience in creating value from these chains.
See
description
Exploration
and Production (E&P)
Main markets and activities
BG Group’s high-performing E&P business is the centre of gravity for the Group. E&P volumes were 604 000 barrels of oil equivalent per day in 2007. The E&P business is expected to have maintained its top quartile performance in finding and development costs(a) and unit operating costs per boe(a) in 2007.
Production: Bolivia; Canada; Egypt; India; Kazakhstan; Thailand; Trinidad and Tobago; Tunisia; UK.
BG Group explores for, develops, produces and markets gas and oil around the world. Around 70% of 2007 production was gas. The Group uses its technical, commercial and gas chain skills to deliver projects at competitive cost and to maximise the sales value of its hydrocarbons.
Key events in 2007
- Exploration drilling success in Bolivia, Brazil, Canada, Norway, Thailand and the UK
- Signed Gas Sales Agreement to facilitate Karachaganak Phase III
- Successful expansion of Tapti gas field in India
- Start-up of Buzzard field in the UK
Business Performance*
Total operating profit
£2 387m 2007£2 457m 2006
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Liquefied
Natural Gas (LNG)
Main markets and activities
BG Group has an industry-leading portfolio of LNG assets, delivering cargoes to nine out of the world’s 17 importing nations in 2007.
Liquefaction: Egypt; Trinidad and Tobago. Long-term LNG supply: Egypt; Equatorial Guinea; Nigeria; Trinidad and Tobago. Regasification: Elba Island and Lake Charles, USA; Dragon LNG, UK; Quintero LNG, Chile; Brindisi LNG, Italy.
LNG is gas that has been cooled to a liquid form to make it easier to transport. BG Group’s LNG activities combine liquefaction and regasification facilities with the purchasing, shipping and sale of LNG.
Key events in 2007
- Record LNG volumes and operating profit
- Sanctioned Quintero LNG import terminal, Chile
- Signed Sale and Purchase Agreement for 2.25 mtpa LNG from Nigeria LNG Train 7
Business Performance*
Total operating profit
£521m 2007£352m 2006
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Transmission
and Distribution (T&D)
Main markets and activities
The Group’s T&D businesses are focused on high-growth developing markets in Brazil and India.
Transmission and distribution: Brazil; India.
BG Group’s T&D activities are focused in fast-growing markets, developing both markets and infrastructure for the delivery of gas.
Key events in 2007
- Continued strong growth in customer numbers, volumes and profit
- Expansion of distribution network in São Paulo and Gujarat
Business Performance*
Total operating profit
£247m 2007£231m 2006
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Power
Generation
Main markets and activities
BG Group has a 4.3 GW portfolio of mostly gas-fired power generation.
Power: Italy; Malaysia; Philippines; UK; USA. Co-generation: Brazil; India.
A large proportion of the worldwide demand for gas is attributable to power generation. BG Group develops, owns and operates gas-fired power generation plants.
Key events in 2007
- Acquired two US power plants
- Increased holding in Italian power operation to 100%
Business Performance*
Total operating profit
£130m 2007£106m 2006
- *
- For a reconciliation between Business Performance and Total Results, see note 2.
- (a)
- See definitions.