The BHP Group Ltd (ASX: BHP) share price dipped today. That's despite today's announcement of the commissioning of a new natural gas field to supply Australia's east coast.
At close of trade today, shares in the mining giant were selling for $47.44 – down 0.25%. By comparison, the S&P/ASX 200 Index (ASX: XJO) is 0.68% lower.
Let's take a closer look at today's news and how it might be affecting the BHP share price.
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BHP's joint venture
BHP revealed its 50/50 Gippsland Basin Joint Venture's West Barracouta natural gas field with Exxon Mobil Corporation (NYSE: XOM)'s Australian affiliate, Esso Australia, is now up and running.
The field, located in the Bass Strait off the coast of Victoria, is expected to provide domestic gas supply for Australia's east coast. BHP's stake in the venture is worth approximately $400 million. The project hasn't appeared to have a positive impact on the BHP share price.
Country Manager of BHP Petroleum Australia, Graham Salmond, said:
The Gippsland Basin Joint Venture has played a central role in reliably meeting the energy needs of Australian homes and businesses for 50 years.
As the largest domestic gas project in Australia in recent years, West Barracouta has unlocked a new, high quality gas resource that will help maintain Bass Strait production and support our diverse domestic customer base.
We aim to continue developing opportunities to maximise the value of Bass Strait for the joint venture and our shareholders.
Natural gas commodity price
Presently, natural gas is trading on the commodities market for US $2.75 per 10 billion British thermal units. While up 49.5% higher than this time last year, the price of natural gas is down 16.1% since the middle of February this year.
The website Trading Economics is forecasting the price of natural gas to fall to US $2.16 in 52 weeks' time.
The BHP share price, however, is still tipped to increase because of the surge in demand for copper.
BHP share price snapshot
Over the past 12 months, the BHP share price has increased by 54%. In fact, since the beginning of this year, the company's value has increased by 10.1%.
BHP has a market capitalisation of $224.3 billion.
