BG Group reaches agreement on long-term LNG sales to India
Posted: 29 September 2011
BG Group has signed a Heads of Agreement (HoA) with Gujarat State Petroleum Corporation (GSPC) for the long-term supply of up to 2.5 million tonnes per annum of Liquefied Natural Gas (LNG).
"This is a landmark agreement for BG Group, establishing long-term LNG sales into one of the world's largest and fastest growing energy markets," said Sir Frank Chapman, BG Group Chief Executive.
"We have been in the Indian gas market for more than 15 years and this agreement brings essential new supplies of natural gas to the country. It adds another important new dimension to the Group's expanding global LNG business."
The HoA sets out the basis on which BG Group proposes to sell the LNG volumes to GSPC for up to a 20-year period beginning as early as 2014. The LNG volumes will be sourced from the Group's global supply portfolio.
BG Group and GSPC intend to complete negotiations and execute a fully-termed LNG sales and purchase agreement early next year.