BG Group has announced it has signed an agreement for the long-term sale of liquefied natural gas (LNG) to India.
Under the agreement, the British firm will supply up to 2.5 million tonnes per annum (mtpa) of LNG to state-owned Gujarat State Petroleum Corporation Limited (GSPC) for up to 20 years. It will initially supply 1.25 mtpa of LNG in 2015, which could increase to 2.5 mtpa after two years.
Chris Finlayson, Chief Executive of BG Group 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.
“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.”
It is the first time the company has struck such a deal in India, adding to its previous long-term supply contracts with China and Japan.