Current NewsBG Group signs deal for LNG supply to GSPC
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- Business & Industry
- Thursday, 21 March 2013 14:17
- Published on Thursday, 21 March 2013 14:17
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Gujarat Global News Network, Gandhinagar
Gujarat State Petroleum Corporation (GSPC) and BG Group Wednesday completed an agreement for the long-term sale of liquefied natural gas (LNG) to GSPC.
The deal was signed in the presence of Gujarat Chief Minister Narendra Modi and UK Foreign Minister Hugo Swire.
Under the deal, UK-based BG Group will supply GSPC with as much as 2.5 million tonnes per annum (mtpa) of LNG. BG will initially supply 1.25 mtpa of LNG beginning 2015 and for up to 20 years. Negotiations for the deal which began in September 2011 concluded following the signing of the agreement.
Though the exact price of the deal cannot be calculated due to the fluctuating prices of LNG, the deal is estimated to be worth $5 billion as per Gujarat government sources.
“We have been active in India for more than 15 years and it is a large and important market that we understand very well. We expect the country to lie third among LNG importing countries in the world by 2025, behind Japan and China,” said BG Group chief executive officer Chris Finlayson.
"Our long-term agreement with GSPC adds another dimension to our global LNG portfolio with the addition of material new supplies to a fast growing market. We look forward to building our presence in the country," Finlayson said.
BG Group Plc is a world leader in natural gas, active in more than 20 countries on five continents. GSPC is a leading oil and gas exploration, development and production company.
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