UK firm British Gas seals deal with GSPC for LNG supply

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.

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