READING, England, Sept. 29 (UPI) -- BG Group announced Thursday it reached a long-term supply agreement to deliver more than 2 million tons of LNG to an energy company in India.
BG Group said it signed a head of agreement deal with Gujarat State Petroleum Corp. for the supply of around 2.5 million tons of liquefied natural gas per year. The 20-year sale proposal envisions deliveries as early as 2014.
BG Group Chief Executive Officer Frank Chapman, in a statement, said this was a landmark agreement for his company in one of the largest and fastest growing energy markets in the world.
"It adds another important new dimension to the group's expanding global LNG business," he added.
Despite a lackluster economic performance in 2010, Chapman said the potential for long-term growth in the LNG sector was very strong.
The U.S. Energy Information Administration has said the expected increase in world energy consumption by 53 percent by 2035 to be driven largely by economic growth in China and India.