BG hires Goldman to analyse possible asset sales

Oil and natural gas producer BG Group has hired Goldman Sachs Group to help it analyse the options available to it for selling part of the infrastructure linked to its Australian liquefied natural gas project, said two people with knowledge of the matter, Bloomberg reports.

Oil and natural gas producer BG Group has hired Goldman Sachs Group to help it analyse the options available to it for selling part of the infrastructure linked to its Australian liquefied natural gas project, said two people with knowledge of the matter, Bloomberg reports.

The infrastructure assets around its plant on Curtis Island, in Queensland state, include a 540-kilometer (336-mile) pipeline to carry coal seam gas from Surat Basin to the processing plant.

The energy outfit is known to be seeking to raise $8.1bn in funds via asset sales to help fund its investment plans.

To be had in account, BG is facing significant cost inflation at the above plant, where it still plans to build two processing units, due to the rise in the Australian dollar and increasing labour costs. The total cost of the project, which will have a combined processing capacity of 8.5m metric tons of LNG a year, is now forecast to reach $20.4bn, a 36% increase.

AB

Recommended

Broker safety – your questions answered
Investment strategy

Broker safety – your questions answered

Cris Sholto Heaton answers more of your questions about the safety of stockbroker accounts
25 Mar 2020
How demographics affects stock valuations
Investment strategy

How demographics affects stock valuations

New research suggests that stock and bond valuations are driven by the age of the population – at least in the US.
24 Feb 2020
Do you own shares in Sirius Minerals? Here’s what you need to do now
Stocks and shares

Do you own shares in Sirius Minerals? Here’s what you need to do now

Mining giant Anglo American has proposed a cash takeover of Yorkshire-based minnow Sirius Minerals. Unhappy shareholders must decide whether to accept…
20 Feb 2020

Most Popular

Why we won’t see a house-price crash in 2021
House prices

Why we won’t see a house-price crash in 2021

Lockdown sent house prices berserk as cooped up home-workers fled for bigger properties in the country. And while they won’t rise quite as much this y…
18 Jan 2021
Inflation is the easiest way out of this – just don’t expect politicians to admit it
Inflation

Inflation is the easiest way out of this – just don’t expect politicians to admit it

The UK government borrowed £34.1bn in December, a record amount for that month. Britain's debt pile now amounts to 100% of GDP. How are we going to pa…
22 Jan 2021
When will the US stockmarket bubble burst?
US stockmarkets

When will the US stockmarket bubble burst?

With US stocks more expensive than before the Wall Street crash of 1929, there are growing signs of “mania”. But what will push markets over the edge?
22 Jan 2021