BG bids on Australia's Origin

LONDON, April 30 (UPI) -- Britain's BG Group made a $13 billion bid for Australia's Origin Energy.

Origin Energy is Australia's second-biggest electricity and gas retailer with nearly 3 million customers in Queensland, New South Wales, Victoria, South Australia and New Zealand. It also has several gas-fired power stations. Analysts, however, say BG wants to use Origin's Queensland coal-seam methane gas reserves to export millions of tons of Australian liquefied natural gas to the Asia-Pacific region, the Australian reported.

BG assured the government it will increase domestic gas supplies if its bid is successful, but some fear a foreign company would push Australian gas prices up.

The Origin board had not yet considered the proposal and officials said a meeting between the parties would be held. The bid would still need to be approved by the Foreign Investment Review Board.