UK firm British Gas seals deal with GSPC for LNG supply
Agreement,which has been seen as the UK further warming up to the Narendra Modi government after it had gone cold following 2002 riots,will assure LNG supply to Gujarat for 20 years.
Gujarat public sector unit Gujarat State Petroleum Corporation (GSPC) and British Gas (BG) Group Wednesday completed an agreement for the long-term sale of liquefied natural gas (LNG) to Gujarat in presence of Chief Minister Narendra Modi and UK Foreign Minister Hugo Swire,who led the trade delegation.
Agreement,which has been seen as the UK further warming up to the Narendra Modi government after it had gone cold following 2002 riots,will assure LNG supply to Gujarat for 20 years. Apart from meeting growing demand for LNG in state industries,steady supply will further help Gujarat in its ambition to become gateway for imported gas for north India.
Two exiting LNG terminals at Dahej and Hazira in Gujarat are the only ones operational in India today and it has total capacity of over 14 million standard cubic meter. Besides,GSPC subsidiary Gujarat State Petronet Ltd (GSPL) has bagged the contract to lay down nearly 4,000 km long gas pipelines. One of them,which starts at Mehsana and proposes to take gas up to Jammu and Srinagar via Bhatinda and second one to come up between Surat to Orissa. Agreement was signed at convention hall of Mahatma Mandir in Gandhinagar.
“Today’s agreement will be proved historic yardstick in ever evolving relationship between Gujarat and Britain,” Modi said. Addressing visiting delegate he said,“Hugo has been inspirational for cooperation and support between Gujarat and Britain. It shows their commitment in further developing this relationship.” Modi further said Gujarat is emerging as energy hub for India. The state has the largest network of pipeline and two LNG terminals handling 80 per cent of cargo.
“When in Gujarat demand for LNG is on rise,the agreement will assure steady supply for 20 years,” said D J Pandian,Principal Secretary,Energy and Petro Chemicals. The state so far has such contract only with one company and that also to expire in a year or so.
Under the agreement,BG Group will supply GSPC with up to 2.5 million tonnes per annum (mtpa) of LNG,concluding negotiations announced in September 2011.
BG Group will initially supply 1.25 mtpa of LNG beginning in 2015 and for up to 20 years,potentially increasing to 2.5 mtpa after two years. GSPC will be supplied from the Group’s global LNG portfolio.
BG Group Chief Executive Chris Finlayson said,“We have been active in India for more than 15 years and it is a large and important market that we understand well. We expect the country to lie third among LNG importing countries by 2025,behind Japan and China.”
“Our long-term agreement with GSPC adds another dimension to our global LNG portfolio with the addition of material new supplies to a fast growing market. We look forward to building our presence in the country,” Finlayson said.
Goof-up over gas
AHMEDABAD: SO did the Gujarat government sign an agreement with British Gas,a UK supplier of gas,electricity and home services based in London or BG group,the global natural gas business group? Even as the British high commission officials clarified to mediapersons Wednesday that it was BG group and not British Gas (as was reported in this paper) that had signed the agreement with Gujarat,the official release from the Gujarat government said,”Today GSPC signed a MoU with British Gas in presence of UK’s Minister of State in the Foreign & Commonwealth Office,Mr. Hugo Swire and the British High Commissioner to India Mr. James Bevan”.
The news went viral with Chief Minister Narendra Modi’s website and his facebook page also posting it as an agreement with “British Gas”,instead of BG group.
This even as BG group website (www.bg.group.com) posted news of the agreement signed with the Gujarat PSU. And not the official website for British Gas (www.britishgas.co.uk).
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