READING, England, March 20 (UPI) -- India may be the third-largest importer of liquefied natural gas behind China and Japan by 2025, BG Group Chief Executive Chris Finlayson said Wednesday.
BG Group announced Wednesday it reached a long-term sales agreement with India's state-owned Gujarat State Petroleum Corp. Ltd. that extends for 20 years.
"We expect the country to lie third among LNG importing countries by 2025, behind Japan and China," Finlayson said in a statement. "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."
BG group will supply its Indian counterpart with 1.25 million tons of LNG per year for up to 20 years under the terms of the agreement. That delivery could ramp up to 2.5 million tons per year after two years.
Analysis from consultancy firm Wood Mackenzie in February estimates the LNG market in India will grow 20 million tons per year by 2025. Offshore production of natural gas in some reserves nearly halved in one year, the firm stated.
BG Group made no announcement about the financial terms of the deal.