BG bets big on India, weighs $900-mn investment in 5 yrs
By TNN |
Highlights
NEW DELHI: BG E&P is looking to invest in the region of $900 million in India over the next five years, and has identified the country as one of its top nations of focus for long-term growth.
Speaking to ET, William H Adamson, managing director of BG India, said the group���s strategy for India is to grow its business both in upstream and downstream areas. ���We see growth in India coming from developing the Panna-Mukta and Tapti fields to their full potential, expanding portfolio through NELP VI, inorganic growth through strategic acquisitions and farm-ins and leveraging our downstream presence in the gas transmission and distribution markets to secure and develop new markets,��� said Mr Adamson.
India now plays a significant role in the context of BG���s global strategy. BG has been in India for over a decade and has built up successful businesses in both the upstream and downstream segments, with a total investment of $900 million to date.
BG E&P, listed in London and New York, had a third-quarter revenue of p 1,647 million in 2006, with a total of p 5,373 million for the nine months up to 2006. The company operates in four key business sectors ��� exploration and production, liquefied natural gas, transmission and distribution, power in 25 countries worldwide.
���We strive to secure competitively priced resources, either equity or contracted and connect these resources to attractively valued markets, locally or globally. We have been able to successfully implement this strategy in India,��� said Mr Adamson.
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In India, Mr Adamson welcomed the shift from a controlled to free market pricing for the gas market, and said this would interest international LNG suppliers to look at India as a feasible long-term supply option. According to Mr Adamson, the hub of domestic supplies can shift to the east coast from the north and west on the back of discoveries in the east, and this would be an impetus to the growth of gas markets in southern and eastern India.However, it is important to start planning to be ahead of the curve in terms of downstream infrastructure to avoid any lag effect with upstream project development. The absence of infrastructure to take gas to market would lead to inevitable delays in upstream project development, he said.
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