Shell's BG move is big on Asian gas
The takeover signals an expectation that natural gas in the Asian market will grow
As well as muscling into Brazil's deep-water oil play, Shell's $70bn move on BG Group is a big bet on the expanding market for natural gas in the Asia Pacific region. As the Anglo-Dutch supermajor takes over UK-based BG, it cements its dominant position in the global liquefied natural gas (LNG) trade, most of which flows into energy-hungry Asia. The move is confirmation that Shell, along with some other members of the Big Oil family, firmly believes cleaner-burning gas will play a major role in meeting the energy demand of emerging economies, such as China and India. Before the merger was announced, BG was poised to become China's biggest LNG supplier with 8.6m tonnes per year (t/y) committe
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