BG Group share price: Company moves oil and LNG trading headquarters to Singapore
iNVEZZ.com Monday, April 7: BG Group (LON:BG) has decided to move its headquarters for oil and liquefied natural gas (LNG) trading from the UK to Singapore to be closer to its customers in the fast expanding Asian region, the company said today. As of 12.42 BST, BG Group’s shares were trading 1.55p or 0.32 percent lower at 488.50p.
BG won a contract in 2008 to supply three million tonnes of LNG to Singapore annually over 10 years from 2013. The company has more than 70 people employed in the city-state. Steve Hill, president for marketing oil and LNG worldwide, commented: “By moving the centre of our global LNG and oil marketing business to Singapore, the heart of the fastest growing LNG region, we are closer to many more of our existing customers and are better positioned to develop new and deeper relationships in the region.”
Asia accounts for about 46 percent of global gas trade, according to the International Energy Agency. Moreover, data from the International Group of Liquefied Natural Gas shows that the region used 75 percent of the world’s LNG last year. Seah Moon Ming, chairman of trade promotion agency IE Singapore, has said that Singapore’s English-speaking workforce and political neutrality will help the city-state become an Asian hub for LNG trading in the next five to 10 years.
Are you looking for fast-news, hot-tips and market analysis? Sign-up for the Invezz newsletter, today.
Multinationals have long eyed Singapore’s market. Germany’s EON, Glencore Xstrata and others have hired LNG traders in the city. About 25 LNG firms have set up operations in Singapore over the past six years, according to IE Singapore. Royal Dutch Shell moved its headquarters for international gas to Singapore more than a year ago.
The news of BG Group’s relocation comes after the company recently announced it had secured a new exploration opportunity offshore Myanmar. You can read more on this story at Oil major to explore in Myanmar.
**Analysts on BG Group**
JPMorgan Chase reaffirmed its ‘neutral’ rating on BG Group’s shares in a note sent to investors last Friday. It gave the stock a price target of 1,300.00p.
Two investment analysts rate BG Group as a ‘sell’, nine give it a ‘hold’ rating, 15 are calling it a ‘buy’ and one rates it a ‘strong buy’. The shares have a consensus rating of ‘buy’ and an average price target of 1,282.52p.
**As of 13.05 UTC buy BG Group shares at 1,135.01p.**
**As of 13.05 UTC sell BG Group shares at 1,134.99p.**