BG firms up agreement to supply up to 2.5 MTPA LNG to GSPC
Ahmedabad: The UK-based oil and gas major BG group on Wednesday said it has completed a long-term sale agreement for the supply of 2.5 million tonnes per annum liquefied natural gas (LNG) to India.
Under the agreement, BG Group will supply state government owned Gujarat State Petroleum Corporation (GSPC) with up to 2.5 million tonnes per annum (MTPA) of LNG, concluding the negotiations announced in September 2011, a company statement said.
The group will initially supply 1.25 MTPA of LNG beginning in 2015 and for up to 20 years, potentially increasing to 2.5 MTPA after two years, it added.
"We have been active in India for more than 15 years and it is a large and important market that we understand well," BG Group Chief Executive Chris Finlayson said here.
GSPC will be supplied from the Group's global LNG portfolio, the company statement said.
The group had signed a Heads of Agreement (HoA) for long-term gas supply with the state-PSU GSPC in September 2011, which laid the basis on which BG proposed to sell the LNG volumes to GSPC for up to a 20-year period.
The agreement signed with GSPC by the group was firmed up today in the presence of a BG team.
The BG team is part of a trade delegation led by British Minister of State for Foreign Office Hugo Swire to Gujarat.