BG set to invest $1bn in India

The BG group on Thursday announced its plans to invest $1 billion in India over the next three to five years but said investment to a large extent will depend on the development of the gas market in the country. The group offering to sell 2.5 million tonne of liquefied natural gas from Iran to western and northern India at competitive price also sought fiscal concessions for LNG.

Fiscal incentives include infrastructure status for LNG projects, zero import duty and a uniform sales tax rate of 4 per cent on LNG to meet the domestic industry expectation of a delivered cost of $3 per million British thermal unit.

Addressing mediapersons, group chief executive Frank Chapman said, “We are the lowest cost operator of LNG in the world. Our upcoming greenfield LNG liquefication plant in Iran can supply gas to energy deficit India at the lowest cost.” He said the government should put in place a fallow acreage and an integrated LNG policy. Fiscal regime needs to support development of the energy sector. “Given the right regulatory and fiscal regime, we can meet customer aspirations,” said Chapman, who is visiting India with the entire board of BG group.