The European Commission has approved the acquisition of BG Group by Royal Dutch Shell, saying it would not give Shell a dominant share in markets such as oil and gas exploration, gas liquefaction and wholesale supply of liquefied natural gas (LNG).

The EU competition authority said also that the Anglo-Dutch oil and petrochemicals giant would be unable to bar competitors from access to liquefaction facilities supplying LNG to the European Economic Area (EEA) or from gas transportation and processing infrastructure in the North Sea.

This is mainly because significant additional liquefaction capacity is due on stream in the near future, while significant spare oil and gas transport and processing capacity exists in the North Sea region.

Following the transaction, the merged entity's market share would remain limited in the exploration for oil and gas reserves, the liquefaction of LNG and the wholesale supply of LNG, the EU said, adding that a number of strong competitors would remain active in these market, so that Shell could not influence prices.