BP Share Price: IGS JV to Source LNG from US’ Freeport Terminal

on Aug 12, 2013
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iNVEZZ.com, Monday, August 12th: Indian Gas Solutions (IGS), the joint venture of UK-based BP Plc (LON:BP, NYSE:BP) and India’s Reliance Industries Ltd (BOM:500325), will source liquefied natural gas (LNG) from the Freeport terminal in Texas, The Economic Times reported today. BP’s share price was little changed in intraday trading in London and was marginally down in pre-market trading on the NYSE.

Reliance Industries’ share price closed more than two percent lower in Mumbai.
**BP’s Indian Venture to Source LNG from Freeport**
“BP has recently signed an agreement with US Freeport LNG for 4.4 mtpa of liquefaction tolling capacity,” BP India said in a statement, as quoted by The Economic Times. “BP will be looking to actively market some of this supply in India through India Gas Solutions.”

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Last year, the UK energy giant signed a 20-year contract to export LNG from the Freeport terminal, located on Quintana Island in Texas. The terminal received approval from the US Department of Energy (DOE) to export LNG to countries with a Free Trade Agreement (FTA) with the US in 2012. Earlier this year, the terminal was granted authorisation to export the equivalent of 511 billion cubic feet per year of liquefied natural gas to non-FTA countries.

The Economic Times also quoted an unnamed source close to BP India as saying that Freeport-exported gas would shape Indian Gas Solutions’ strategy.
“Most of BP’s equity gas assets across the world are tied up so now it’s the new LNG that has been contracted at the Freeport terminal in the US that will give some concrete shape to IGS’s overall gas sourcing and marketing strategies,” the source told the Economic Times.

!m[Energy Department Approves Third LNG Export Terminal ](/uploads/story/4749/thumbs/pic1_inline.jpg)
**US Approves Third LNG Export Terminal**
The U.S. Department of Energy last week approved a third LNG export terminal. The Lake Charles Exports LLC facility in Louisiana is the third terminal to have received LNG exports approval by the DOE, the other two being the Freeport terminal and the Sabine Pass LNG Terminal in Louisiana. The Lake Charles Exports LLC is partly owned by BG Group Plc. The terminal, still pending environmental approvals, is expected to export two billion cubic feet of gas a day for 20 years.

Bloomberg quoted the US Energy Information Administration (EIA) as forecasting that gas output would increase to about 70 billion cubic feet a day in 2013 from 69 billion last year.
**BP’s share price was 0.16 percent up at 443.95p in London as of 13:27 BST on 12 August 2013. In New**
**York, BP’s share price was 0.24 percent down at $41.27 in pre-market trading as of 13:21 BST.**
**Reliance Industries’ share price closed 2.33 percent lower at 845.30 Indian rupees in Mumbai on August 12.**
**BG Group’s share price was 0.86 percent down at 1,200.54p in London as of 13:29 BST**

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