A deal worth a record £100 billion has been signed in India for the construction of a gas pipeline to transport gas to the UK.
The gas pipeline will run from the eastern state of Gujarat to England, bypassing Pakistan and India.
The agreement comes as Britain’s Prime Minister Theresa May and Indian Prime Minister Narendra Modi are due to meet in Downing Street in the coming days.
Indian energy minister Gopal Rai announced the deal at a press conference.
Rai, who was in New Delhi for a meeting with his counterpart Anil Baijal, said the deal will enable the UK to benefit from the benefits of India’s energy revolution.
“This project will give us access to India’s vast gas reserves, which have been undervalued for decades,” Rai said.
The pipeline will be one of India-UK joint ventures.
The two countries signed a strategic cooperation deal in 2009.
The joint venture will provide gas to UK power generation and transport systems.
“It is the first project of its kind in the UK, and the UK-Indian energy cooperation is a key part of our energy strategy,” Rai told reporters in New York.
“India’s energy renaissance is making Britain a global energy hub, and this project will help the UK be the global leader in gas transportation and storage,” Rai added.
Rai said the pipeline will also benefit the UK’s national energy grid.
It will be built under the Gujarat Energy Corridor, an ambitious project linking Gujarat to India.
It is part of India and British governments efforts to revive gas production and export, including a planned liquefied natural gas (LNG) terminal in the city of Kochi.
Rai also announced that the project will also contribute to a “more resilient” energy supply network.
The deal is part in a wider energy strategy by Prime Minister May and Modi.
They announced last month that they were set to launch a new initiative to help create jobs in the oil and gas sector.