BG Group plc’s (LON:BG) shares edged 0.54 percent higher to 844.50p as of 2:54 GMT today, after the company announced it had signed an agreement with BP Egypt and RWE Dea to process and transport gas from the two companies’ offshore fields in the Nile Delta.
The tie-in agreement was signed on March 3 and is aimed at securing a better and bigger supply of gas to the domestic market in Egypt, as demand for energy in the country grows rapidly, the company said in a statement today.
Under the terms of the deal, BP and RWE’s Libra and Taurus fields will be connected with BG Egypt and partner PETRONAS’ West Delta Deep Marine (WDDM) offshore facilities. Gas from the two fields will be processed at the WDDM onshore facilities, with expectations of first produce in mid-2017, BG Egypt explained.
Meanwhile, a separate deal was signed by BG Egypt with BP Egypt and RWE, which cedes use of the Rosetta onshore facilities to the two companies as of mid-2016. BG Egypt and Edison still hold the rights to the Rosetta Concession, however, and BG cautioned that it could process future gas at WDDM.
As of March 7, the consensus among 30 investment analysts polled by the Financial Times has it that the Reading-based company will “outperform” the market, with 10 analysts advising investors to “buy”, while three suggest “sell”.
As of 15:52 GMT, Thursday, 12 March, BG Group plc share price is 846.60p.
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