for those wondering why the price just jumped

BG Group Remains Open To Queensland LNG Collaboration

25/08/2010 12:16PM

SYDNEY (Dow Jones)--BG Group PLC (BG.LN) said Wednesday that it remains open to consider collaborating with rival liquefied natural gas projects in Queensland state.

BG said it is currently focused on delivering an economic project consisting of two LNG production units.

"We have always said we are willing to consider collaboration where it does not slow us down," a BG spokesman said in a statement.

Origin Energy Ltd. (ORG.AU) Chief Executive Grant King said Tuesday that the time has come for rival projects in Queensland state to start talking about possible merger deals.

Analysts from broking houses including Macquarie and CLSA have suggested that projects involving Royal Dutch Shell PLC (RDSB.LN) and Santos Ltd. (STO.AU) are the most likely to work together, potentially leaving BG and Origin to consider talks.

BG has already agreed to buy some feed gas for its project from Origin's joint venture with ConocoPhillips (COP).

BG is considered by analysts to be leading the pack at Gladstone, having signed up two customers, received state government environmental approval and already having an established regional LNG supply portfolio.

-By Ross Kelly, Dow Jones Newswires; 61-2-8272-4692; [email protected]
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N.B. This article will most likely appear on "the Australian" web site later on today.