(EnergyAsia, March 22 2013, Friday) — UK’s BG Group Plc said it has secured a 20-year agreement to supply liquefied natural gas (LNG) to India’s Gujarat State Petroleum Corp (GSPC) from 2015.
The Reading-based company said it will initially supply 1.25 million tons a year in 2015, potentially doubling the volume after two years. The companies had been negotiating a supply contract since September 2011.
BG Chief Executive Officer Chris Finlayson said:
“We have been active in India for more than 15 years and it is a large and important market that we understand well. We expect the country to lie third among LNG importing countries by 2025, behind Japan and China.”
GSPC, a company owned by the government of Gujarat state, is one of India’s leading oil and gas exploration, development and production companies. GSPC, which has one of India’s largest gas trading businesses and a significant presence in gas transmission, gas distribution and power generation, is developing an LNG-import terminal at Mundra port.