British gas company BG Group PLC will pay $12.1 billion to pick up Aussie oil and gas producer and electric retailer Origin Energy Ltd.
“Origin has not yet considered the proposal,” Origin said in a statement. “Discussions between the parties will take place, and shareholders will be advised of the outcome.”
The deal follows BG’s $621 million (664 million Australian dollars) purchase of a stake in Queensland Gas Co.’s coal seam methane interests earlier this year to start a liquefied natural gas plant near the Queensland port town of Gladstone.
One LNG plant, or train, is on tap for now, but Origin’s coal seam methane could provide gas for a second plant.
Origin is Australia’s biggest coal seam gas producer and boosted production of the gas by 22% in the three months ended in December compared with the previous year. Origin is also considering further production for Australia’s domestic gas market. More than half of Origin’s natural gas reserves come from coal seam gas reserves in Queensland state, according to the company’s web site.
Source: 1 May 2008, Tech Home InTech Home, U.K. gas company deals for provider Down Under,