BG ties up a £2bn deal for Queensland

BG Group, the third-biggest UK oil and gas producer, has finally sealed a deal to buy Aussie firm Queensland Gas for A$5.2 billion (£2.04 billion).

The deal gives BG's boss Frank Chapman a chance to start up an A$8 billion liquefied natural gas plant ahead of rivals.

Oil and gas majors have been scrambling for coal seam gas assets in Australia to service the still-rising demand for the fuel in Asia.

Chapman's hopes of acquiring QG's rival origin Energy were dashed earlier this year when ConocoPhilips stepped in with an A$8 billion investment. BG offered A$13.5 billion for the whole company.

BG's success in sealing the QG deal was partly due to the market turmoil.

Queensland gas chairman Richard Cottee acknowledged as much when announcing the deal as a "significant cash premium in a very uncertain world".