Business
India to invest $6 bn more in Mozambique gas block: Pradhan
New Delhi, April 13
In addition to the $6
billion already invested, Indian oil companies are slated to invest
another $6 billion in stages by 2019 in Mozambique's Rovuma Area 1
offshore block, Petroleum Minister Dharmendra Pradhan said on Monday.
"In
Mozambique, where I have just concluded my official visit, we have
invested more than $6 billion. Another $6 billion will be invested to
develop Rovuma Area 1 field," Pradhan told reporters here.
State-run
ONGC Videsh Ltd., Oil India and Bharat Petroleum Corp have bought 30
percent stake in this Mozambique gas block and will also participate in
the LNG project.
"The early monetisation of Rovuma Area 1 in
offshore is a priority. But we must also respect the sovereign laws and
rules of that country," he added.
Describing Mozambique, situated
on the eastern coast of Africa, as an important destination from the
standpoint of India's energy security, the oil minister said a joint
working group, which was decided to be set up in November 2014, met in
Mozambique during his visit.
"In August, a high-level delegation
from Mozambique's oil and gas sector will come to India, which signifies
the close ties," he said.
On liquefied natural gas (LNG) imports
from Mozambique, Pradhan said the first shipments are expected to come
by 2019, and the operator consortium has already begun talks with Indian
utilities like GAIL regarding supplies.
During his official
visit on April 9-10, besides meeting Minister of Mineral Resources and
Energy Pedro Couto, Pradhan also met Foreign Minister Oldemiro Baloi and
called on Prime Minister Agostino Rosario.
Mozambique plans to produce 34 million tonnes of liquefied natural gas annually from its biggest gas field.
Ten LNG terminals are likely to be set up, each with a yearly capacity of five million tonnes of gas.
US-based
Anadarko Petroleum Corp is the Rovuma 1 project operator. Other
partners include Empresa Nacional de Hidrocarbonetos EP of Mozambique,
Mitsui of Japan and PTT Exploration and Production of Thailand.
India
currently has 18,000 MW of power-genration capacity lying idle due to
shortage of gas, with another 10,000 MW in the pipeline awaiting commis