HomeEconomyBP buys natural gas producer Archea for $4.1 billion

BP buys natural gas producer Archea for $4.1 billion

Archea produces natural gas from waste. With this operation, BP hopes to “substantially increase and accelerate its activities in bioenergy.”

The British hydrocarbons giant BP announced on Monday the acquisition of the American “renewable” natural gas producer Archaea Energy for 4.1 billion dollars, including 800 million for debt.

Archea produces natural gas from waste. BP hopes with this operation “to greatly increase and accelerate its bioenergy activities” and counts on this acquisition to “support (its) progress towards (its) carbon neutrality objective”, it said in a press release.

The operation still needs to be approved by regulatory authorities and by Archea shareholders. “The global demand for biogas is growing rapidly,” the group argues.

BP shares fell 0.46% to 453.25 pence around 1200 GMT.

The production of “biogas” requires less energy and is therefore less polluting than the extraction of natural gas through drilling or hydraulic fracturing. It also prevents methane, a powerful greenhouse gas, from escaping into the atmosphere. However, it emits CO2 when consumed.

>> More info to come on BFM Business in a few moments. Also watch BFM Business live on video and follow us On twitter.

Author: CO with AFP
Source: BFM TV

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