BG Group to Ink Major LNG Deal with Gujarat

BG Group is expected to ink a 20 year LNG supply deal worth $20 billion with the Indian state of Gujarat, the Financial Times reported on Tuesday citing people with knowledge of the deal.

In 2011, the British company entered an initial agreement with Gujarat State Petroleum Corporation, a state-owned distributor, to explore supplying as much as 2.5m tonnes of LNG per year.

The Financial Time reported that on Wednesday the group will sign a final deal confirming the full value of the arrangement and the date of its commencement.

The move is the first time the company has struck such a deal in India. The company expects India to be the third-largest global importer of LNG by 2025, after Japan and China, with annual demand rising to 50m tonnes.