BG Group signs long-term LNG supply agreement in India

By OGJ editors

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.

Related Articles

ETP unit gets FERC approval for gas exports to Mexico

03/21/2014 Energy Transfer Partners LP unit Houston Pipe Line Co. LP (HLPC) has received approval from the US Federal Energy Regulatory Commission to build a ...

Millennium Pipeline appoints president

03/20/2014 Millennium Pipeline Co. LLC has selected Joseph Shields as its president. He succeeds Rocco D’Alessandro, who held the position beginning in May 20...

Shah Deniz II, South Caucasus Pipeline contracts awarded

03/20/2014 The Shah Deniz and South Caucasus Pipeline consortia awarded project management and construction contracts for the development of Shah Deniz Stage ...

MARKET WATCH: NYMEX crude prices rise on Seaway pipeline expansion news

03/19/2014 Crude oil futures prices rose on the New York market Mar. 18 after Enterprise Products Partners LP told analysts and investors that an expanded Sea...

Careers at TOTAL

Careers at TOTAL - Videos

More than 600 job openings are now online, watch videos and learn more!


Click Here to Watch

Other Oil & Gas Industry Jobs

Search More Job Listings >>
Stay Connected