Oil and gas company BG Group on Wednesday announced the completion of an agreement for the long-term sale of liquefied natural gas (LNG) to India.

Under the agreement the company will supply state-owned Gujarat State Petroleum Corporation (GSPC) with up to 2.5m tonnes per annum (tpa) of LNG.

Starting in 2015, BG Group will initially supply 1.25m tpa of LNG for up to 20 years, potentially increasing to 2.5m tpa after two years. GSPC will be supplied from the group's global LNG portfolio.

BG Group Chief Executive Chris Finlayson said: "We have been active in India for more than 15 years and it is a large and important market that we understand well. We expect the country to lie third among LNG importing countries by 2025, behind Japan and China.

"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. We look forward to building our presence in the country."

The share price fell 1.05% to 1,174.50p by 15:35 on Wednesday.

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