UK's BG Group plc today said it had signed an agreement to sell up to 2.5 million tonnes of liquefied natural gas (LNG) a year to Gujarat State Petroleum Corp (GPSC) on a long-term contract.
"The Heads of Agreement (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," BG Group said in a statement. "The LNG volumes will be sourced from the Group's global supply portfolio."
The two firms intend to complete negotiations and execute a fully-termed LNG sales and purchase agreement early next year.
BG Group Chief Executive Sir Frank Chapman said: "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. 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."
BG Group, formerly known as British Gas, is world leader in natural gas. Active in more than 25 countries, BG Group has a broad portfolio of exploration and production, LNG and transmission and distribution business.
GSPC is a Gujarat government company.
