BG Group signed a heads of agreement agreeing to provide LNG in India on a long-term basis to Gujarat State Petroleum Corp. (GSPC). Terms of the HOA call for as much as 2.5 million tonnes/year for a 20-year period starting as early as 2014. The LNG volumes will be sourced from BG Group’s global assets.
Financial details were not outlined yet. BG Group and GSPC expect to finalize an LNG sales and purchase agreement in early 2012.
Frank Chapman, BG Group chief executive officer, said the HOA establishes “long-term LNG sales into one of the world’s largest and fastest-growing energy markets.” He said, “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.”
Petronet LNG Ltd.—a joint venture of GAIL India, Oil & Natural Gas Corp., Indian Oil Corp., and Bharat Petroleum Corp.—is India’s biggest LNG importer (OGJ, Mar. 7, 2011, p. 100). Currently, Petronet LNG is constructing a 2.5-million tpy terminal at Kochi with targeted commissioning of mid-2012. For that terminal, Petronet LNG has a long-term gas supply contract with ExxonMobil Corp. from Gorgon field.