Liquefied natural gas boosts BG

BG is the former exploration arm of British Gas

UK energy exploration firm BG Group has experienced a strong performance at its liquefied natural gas (LNG) arm in the first quarter of the year.

BG said its LNG unit would report a first-quarter operating profit of at least £130m ($226m).

LNG is gas cooled to liquid so that it can be shipped in pressurised tankers across distances too large to be economically connected by pipelines.

Recent speculation has linked BG with a possible bid offer from Exxon Mobil.

"The LNG shipping and marketing business managed 40 cargoes in the quarter, of which approximately two thirds were sold into markets outside of the United States," BG said in a statement.

"This is due to very strong seasonal demand and higher realised prices in Japan and Europe."

BG, the former exploration and production arm of British Gas, is due to report first-quarter results on 3 May.