Wednesday, March 4, 2015

No mention of British Columbia plans from BG Group Global outlook statement

Those looking for indications that the "pause" is coming to an end for the BG Group plans for Prince Rupert will be disappointed with the background information from a global review delivered today by the company.

The Global trade summary features the title "The hiatus continues" which we imagine is an indication that not much is going to change on the local scene, when it comes to an update for the Ridley Island proposal.

In their overview, BG highlighted some of their investments in such locations as the United States, Papua New Guinea, Australia, Brazil and Algeria.

For the most part the BG outlook is one that is looking to Australia for 2015 with projects currently under construction there starting to come on line and adding volumes to the BG inventory levels.

As well, BG is "anticipating that the LNG markets will become more volatile over the next few years as it responds to "lumpy" supply and market additions and exogenous supply and demand factors."

You can review the full Trade Summary from the BG group here

Last month just prior to introducing Helge Lund as the new man at the helm of the BG Group,
the company released its final financial statement for 2014, outlining a decrease of 19% in revenues and operating income in the fourth quarter of the year.

The main takeaway the note being the advisory that planned capital expenditure on a cash basis in 2015 is expected to be significantly lower than 2014, as projects complete and the Group reacts to a lower oil price environment. Capital expenditure on a cash basis is expected to fall to between $6 - 7 billion in 2015.

As well in the synopsis of Fourth Quarter Business Highlights, there was no mention of the planned Canadian operations to be found anywhere.

More on the fourth quarter report released on February 3rd can be found here.

BG put their Prince Rupert plans on hold in late October of 2014, little further information on their proposed terminal for Ridley Island has been released since that time.

For some of our background on the proposed development see our archive page here.

Yesterday, Petronas the proponent of the other large LNG project proposed for the North Coast at Lelu Island, outlined that late June of this year is their new target date for a Final Investment Decision for that terminal development.

You can review all of the proposed LNG developments for the North Coast from our LNG archive page here.

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