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BG Group on Wednesday said it will supply up to 2.5 million tonnes a year of liquefied natural gas (LNG) to the state-owned Gujarat State Petroleum Corporation Ltd (GSPC) from 2015.
At the completion of an agreement, following negotiations announced in September 2011, BG Group said in a statement here that it will initially supply 1.25 mt a year of LNG beginning in 2015 and for up to 20 years thereafter, increasing to 2.5 mt a year after two years.
According to sources, earlier in the day, British Minister of State for Foreign Office Hugo Swire met Modi in Gandhinagar. Swire, who is responsible for the UK’s relations with India, was accompanied by a large business delegation. Last year, the British High Commissioner to India James Biven had also called on the Chief Minister and the UK had participated in the Vibrant Gujarat Summit in January.
GSPC will be supplied from the Group’s global LNG portfolio.
BG Group Chief Executive Chris Finlayson said that BG has been active in India for more than 15 years. “We expect the country to come in 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.”
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. It has one of the largest gas trading businesses in the country and has a significant presence in gas transmission, gas distribution and power generation.
The company is also developing an LNG terminal at Mundra in Gujarat.
In October last year, GSPC had bought the entire 65.12 per cent BG stake in Gujarat Gas Company Ltd (GGCL), for Rs 2,464 crore at Rs 295 per share. The BG stake was acquired by Gujarat Distribution Networks Ltd, which is fully owned by GSPC. GGCL had distribution rights of LNG, mainly in south Gujarat, and caters to over 3.5 lakh customers.
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