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Market Chatter: BP Plans Pipeline Gas Trading Layoffs Amid LNG Push

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BP (BP) plans to cut about 20 jobs from its pipeline gas trading business as the company increases focus on liquefied natural gas trading, Reuters reported Friday, citing two sources familiar with the matter.

BP will shut down its pipeline gas trading desk and shift remaining staff into the company's rapidly growing LNG trading business.

The move reflects wider changes across Europe's gas market, following countries' reduced reliance on Russian pipeline supplies and increased LNG imports after the 2022 energy crisis.

European energy companies have generated billions from gas trading by benefiting from price swings across regional and derivatives markets during recent supply disruptions.

One source said lower pipeline gas trading activity across Europe likely played a role in BP's decision to reduce the team's size.

BP has identified LNG as a core part of its strategy as the company works to lower debt levels and refocus spending on oil and gas projects after its unsuccessful expansion into renewables.

BP continues expanding LNG trading activities in Europe, Asia, and the Middle East while supplying customers in Japan, Korea, Kuwait, Singapore, Taiwan, and Australia through long-term contracts, according to the company website.

BP didn't immediately respond to' request for comment.

(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)

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