BG Group signs 20-year LNG deal

BG Group said yesterday it had finalised a 20-year liquefied natural gas (LNG) supply deal with Tokyo Gas for 1.2m tonnes per annum beginning in 2015. BG will supply the fuel from its $15bn (£9.3bn) Queensland Curtis Island coal seam gas to LNG project in Australia, which is due online in 2014. Tokyo Gas will also take a 1.25 per cent equity stake in some of BG’s coal seam gas reserves as well as a 2.5 per cent stake in the project’s second LNG train, BG said. BG's Queensland project was given the final go-ahead last October after Australia's government gave its environmental approval. It is one of several coal seam gas to LNG projects worth roughly $70bn moving forward around the coal port of Gladstone.