Global oil and gas major BP plans to sell some of the US Freeport liquefied natural gas (LNG) in India through its joint venture firm Indian Gas Solutions (IGS).
It may be recalled that IGS is a joint venture between BP and Mukesh Ambani-promoted Reliance Industries,.
BP earlier agreed to buy 4.4 mn tpa of liquefaction tolling capacity, which will provide BP with Henry Hub-linked LNG supply. US Freeport LNG and BP entered into an agreement to this effect.
In a statement, BP said the LNG agreement would strengthen its LNG supply portfolio and will allow even more flexibility in working with key customers and stakeholders.
Last February, BP signed a 20-year contract to export LNG from the Freeport terminal in Texas. Supplies will start in 2017 from the plant’s first unit and the liquefaction tolling agreement with BP will commence upon completion of Freeport LNG’s second production unit, said Freeport in a statement.
IGS plans to source natural gas from abroad and supply the same in India. The company will also develop infrastructure to accelerate transportation and marketing of natural gas within the country and will be funded with equal equity from BP and RIL.