India Signs Up for Mozambique LNG Supply

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Written by Richard Finlayson, Senior International Editor for Industrial Info Resources (Sugar Land, Texas)--Located on the southeast coast of Africa, Mozambique faces the west coast of India some 4,000 kilometers (2,480 miles) over the Indian Ocean, which creates a natural environment for trade and industrial exchanges between the two countries. Another factor that encourages these exchanges is that Mozambique is a growing source of the mineral resources and hydrocarbons that India needs.

While attending the Petrotech 2014 international oil and gas conference last week in New Delhi, India's Petroleum Minister, M. Veerappa Moily, and Mozambique's Minister for Mineral Resource, Esperanca Bias, agreed to accelerate cooperation in the hydrocarbon sector. A memorandum of understanding (MoU) is being fast-tracked for signing.

Bias said that the first natural gas production from Rovuma basin is expected to begin in 2018, which would mean that India could get the first LNG cargo from Mozambique in 2019.

ONGC Videsh Limited (BSE:500312) (Dehradun, India) and Oil India (BSE:533106) (Noida, India) together hold a 20% stake in the Rovuma Area 1 offshore block. The other partners in Area 1 include the project operator, Anadarko Petroleum Corporation (NYSE:APC) (The Woodlands, Texas), ENH (Maputo) (the national oil corporation of Mozambique), Mitsui (OTC:MITSY) (Tokyo, Japan), Bharat Petro Resources Limited (Mumbai, India) and PTTEP (Bangkok, Thailand).

The consortium is holding discussions with Indian companies Bharat Petroleum, Petronet LNG (BSE:532522) (New Delhi, India) and GAIL (BSE:532155) (New Delhi) (Gas India).

For related information, see January 10, 2013, article - Anadarko Awards Fluor/JGC Joint Venture Mozambique LNG Offshore FEED Contract.

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