BG £2bn Oz energy bid 'in the pipeline'

Gas giant BG Group was today being tipped to launch a £2.33 billion bid for Australian energy firm Queensland Gas despite the economic turmoil in Asian markets.

Reports claim it is targeting Australian rival AGL's 24.8% stake in Queensland Gas, a liquefied natural gas producer exporting to Asia. Such a move would take BG's holding of Queensland up to 36% and could serve as a precursor to an outright bid.

BG lost in its attempts earlier this year to buy Australian LNG group Origin Energy, and is apparently undeterred by rapidly contracting economies in countries such as South Korea.

BG declined to comment on the reports but shares in Queensland Gas and AGL were suspended in Sydney.