BG Signs Long-Term LNG Deal in India

The Indian arm of BG Group has signed a Heads of Agreement (HoA) with state owned Gujarat State Petroleum Corporation (GSPC)  for the long term supply of up to 2.5 million tonnes of liquefied natural gas (LNG) per annum.

" This is a standalone deal that we've entered with GSPC and the LNG volumes will be sources from BG Group's global supply portfolio," BG India head Walter Simpson told media after signing the deal.

Asked to confirm if more such deals are in the pipeline, he said that the group has been on an  expansion mode of its LNG business in India and Asia. " I can't reveal specifics at the moment," he said.

" Our HoA with GSPC sets out the basis on which BG India proposes to sell the LNG volumes to GSPC for up a 20-year period beginning as early as 2014." he pointed out.

The group which has been supplying LNG cargoes to India on spot basis since 2006, supplied 30 such cargo so far.