UK-based oil and gas major BG group on Wednesday announced the completion of a long-term sale agreement for the supply of 2.5 million tonnes per annum (MTPA) of 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 MTPA of LNG, concluding negotiations announced in September 2011, the company said in a statement.
The group will initially supply 1.25 MTPA of LNG beginning 2015 and for up to 20 years, potentially increasing to 2.5 MTPA after two years.
“We have been active in India for more than 15 years and it is a large and important market that we understand well,” said Chris Finlayson, chief executive, BG group.
The group had signed a heads of agreement for long-term gas supply with 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.