High-growth markets In T&D, BG Group has focused on the high-growth markets of Brazil and India. In both of these markets, gas demand tends to be related to economic growth, which is strong, and there is low, but increasing, penetration of gas usage. By concentrating on such markets, BG Group has delivered double-digit volume growth on average in its distribution businesses in recent years. Infrastructure also tends to be limited in these markets and capital investment in the networks is vital to meeting the underlying increase in demand. BG Group is aiming to expand its footprint in both the Brazilian and Indian markets. At MGL and GGCL, distribution volume growth was 2% and 10% respectively in 2007. GGCL now receives about 80% of its supply from BG Group’s Panna/Mukta and Tapti fields.

Financial results – Business Performance

	Revenue and other operating income		Total operating profit (a)
	2007 £m	2006 £m	2007  £m	2006 £m
Exploration and Production (b)	4 039	3 928	2 387	2 457
Liquefied Natural Gas (b)	3 099	2 442	521	352
Transmission and Distribution	978	877	247	231
Power Generation (b)	523	248	130	106
Other activities	7	8	(37)	(43)
Less: intra-group sales	(316)	(233)
	8 330	7 270	3 248	3 103

^(a) Total operating profit includes the Group’s share of pre-tax operating profits in joint ventures and associates.
^(b) Includes other operating income of £(24) million (2006 £26 million) in the E&P segment, £61 million (2006 £108 million) in the LNG segment and £2 million (2006 £nil) in the Power segment.
^(c) Includes the Group’s share in joint ventures and associates.

 See description