RIL-BP to Source LNG From Freeport

RIL-BP joint venture Indian Gas Solutions (IGS) will source liquefied natural gas (LNG) from the Freeport terminal in US to India, BP has told the Economic Times (ET).

BP said that the move will help the company firm up plans for its import terminal and give it more business flexibility. 

The company has signed an agreement with US Freeport LNG for 4.4 mtpa of liquefaction tolling capacity, which will provide it with Henry Hub-linked LNG supply, ET said. The plan is to market this supply in India through India Gas Solutions.

A source close to BP India told ET that gas from Freeport would shape Indian Gas Solutions' strategy. 

"Most of BP's equity gas assets across the world are tied up so now it's the new LNG that has been contracted at the Freeport terminal in the US that will give some concrete shape to IGS's overall gas sourcing and marketing strategies. As of now we can bring that gas to India and have a definite sourcing plan in place," ET quoted the source as saying. 

Indian Gas Solutions is an equal joint venture of RIL and BP, which was set up after BP bought a 30% stake in RIL's oil and gas exploration blocks for $7.2 billion in late 2011.