Sources say BP will cut its pipeline gas trading team, as the focus on LNG grows.

BP aims to dismantle the team that trades pipeline gas, according to two sources familiar with the matter. The oil major is focusing on a larger?liquefied gas (LNG), trading.

Sources said that BP would lay off 20 employees from its pipeline gas division and fold the rest into the fast-growing LNG business. The move "underscores" a wider shift that has been occurring since 2022 when Europe shifted away from Russian pipeline gas to LNG.

BP refused to comment. European majors spent "decades" building large trading desks in order to profit from price differences across time periods, regions and derivatives markets. This has allowed them to "turn volatility into outsized profits" and generate billions of dollars during recent supply crisis, including the latest Iran driven disruption.

One source said that the declining volumes of gas pipelines traded in Europe could be a factor contributing to layoffs.

BP has stated that LNG is a key part of its strategy. The company wants to reduce debt and prioritize oil?and?gas?projects after an ill-fated venture into renewables.

BP has long-term contracts with customers in Japan, Korea Kuwait, Singapore, Taiwan and Australia.

(source: Reuters)