The UK-based oil and gas major BG Group and Gujarat State Petroleum Corporation (GSPC) today signed a long-term agreement for the supply of liquefied natural gas (LNG), giving a boost to India-Britain trade ties.
Under the 20-year pact, BG Group will supply Gujarat government-owned GSPC up to 2.5 million tonnes per annum (MTPA) of LNG.
The agreement, which marks the end of negotiations between the two firms started in September 2011, was signed here in the presence of Chief Minister Narendra Modi and UK's Foreign and Commonwealth Office Minister of State Hugo Swire.
The Group will initially supply 1.25 MTPA of LNG beginning in 2015 and gradually increase the volume to 2.5 MTPA. Supply to GSPC will be made from the Group's global LNG portfolio, the State PSU said in a statement.
Financial details of the contract were not revealed.
Welcoming the signing of the agreement, Mr Swire said this is a great step forward for ties between UK and Gujarat. "This is a great step forward toward relations between UK and Gujarat. Following the (British) Prime Minister's highly successful visit last month this is further evidence that the UK and India are making real progress in building a stronger, wider and deeper partnership," Mr Swire said.
"We are well on course to double trade with India by 2015 and I hope this is further encouragement to UK companies to trade, invest and build their presence in India," he said.
"India is already one the world's largest markets for liquefied natural gas and demand is certain to grow."
Maintaining that relations between Gujarat and Britain were on fast track, Mr Modi said "the presence of British Minister during the signing of the agreement here underlines the importance of UK's cooperation with the State."
"We are partner in the journey of progress, development and human welfare," he said, while welcoming a high level UK delegation led by Mr Swire.
Gujarat has around one third of India's gas pipeline network, and two LNG terminals in the State handle 80 per cent of the country's natural gas import, Mr Modi said.
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