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BG sells Australia gas pipeline for $5bn

British energy giant BG will use money to reduce its $11.1bn debt pile and fund future growth

Safety flares are shown at the Woodside operated North West Shelf Gas Venture near Karratha in the north of Western Australia
The deal will see BG continue to use the 543-kilometre pipeline to transport its gas between fields in southern Queensland and an export facility at Gladstone, on Australia's east coast Credit: Photo: AFP

BG Group has sold a gas project in Australia for $5bn (£3.2bn), as the UK-listed energy giant focuses on exploration amid falling profits.

The British company has offloaded a liquefied natural gas pipeline in Queensland to APA Group, Australia’s largest gas infrastructure business that runs pipelines across every state in the country.

The deal will see BG continue to use the 543-kilometre pipeline to transport its gas between fields in southern Queensland and an export facility at Gladstone, on Australia’s east coast.

BG is expected to reap a post-tax profit of $2.7bn from the sale, which will be used to reduce its $11.1bn debt pile and fund future growth.

The money will also provide a buffer against falling oil prices, as BG sheds infrastructure assets to focus on exploration.

The third largest oil and gas group listed in the UK - after Shell and BP - is looking to grow profits after earnings fell 29pc to $759m in its third quarter. Gas production problems in Egypt outweighed a better performance in Brazil and the UK.