READING, England, Feb. 5 (UPI) -- London-listed gas producer BG Group looked to liquefied natural gas as a source of exponential growth as low gas prices dragged on fourth-quarter profits.
Frank Chapman, the chief executive at BG Group, said that despite a 38-percent drop in fourth-quarter profits, overall performance was strong.
"BG Group has delivered a solid performance this year despite the challenging economic environment," he said.
The company pointed to lucrative shale gas deposits in the United States as a reason for optimism. Its net shale reserves in the United States passed 3 trillion cubic feet in 2009. Cotton Valley and Bossier shale deposits in the U.S. south showed "further upside potential."
The company's activity in the Santos Basin off the Brazilian coast, meanwhile, posted net reserves and resource estimates of 3 billion barrels of oil equivalent. Anticipated production from the Santos Basin is expected to reach 400,000 boed by 2020, the company said.
Despite a lackluster performance, Chapman said the potential for long-term growth in the liquefied natural gas sector was very strong.
"The LNG business delivered a very strong result, while excellent progress continues to be made in Brazil, Australia and the USA, underpinning our confidence in the Group's growth outlook to 2020," he said.