Indian group plans to start importing natural gas from Mozambique in 2024

13 February 2019

Indian state group Bharat Petroleum Corporation Ltd (BPCL) plans to import natural gas extracted from the Rovuma basin in Mozambique within five years, a group official said.

The group intends to import 1 million tonnes of natural gas per year from the Area 1 block, where its subsidiary Bharat Petro Resources Ltd (BPRL) owns a 10.0% stake.

The head of the group said that a purchase and sale contract for the gas would be signed with the Mozambique LNG1 Company Pte. Ltd., the trading company of the Area 1 partners.

He added that the group has very bold plans in the natural gas segment, noting that the subsidiary Bharat Gas Resources Ltd. was set up in 2017/2018.

The group is also considering building a terminal to receive natural gas with a capacity of between 1 million and 3 million tonnes per year to meet growing demand in India.

A final investment decision for the exploration of natural gas deposits in the Rovuma Basin Area 1 block, northern Mozambique, is expected to be made in March/April, said the chairman of state-owned oil and gas company Empresa Nacional de Hidrocarbonetos (ENH).

Omar Mithá, speaking on Sunday in New Delhi, India, noted that an Indian company had already signed a contract for the purchase of natural gas to be extracted in the block and added that “the first shipments are expected to reach India in 2024.”

The Area 1 block is operated by Anadarko Mozambique Area 1, Ltd, a wholly-owned subsidiary of the Anadarko Petroleum group, with a 26.5% stake, ENH Rovuma Area One, a subsidiary of state-owned Empresa Nacional de Hidrocarbonetos (ENH), with 15%, Mitsui E&P Mozambique Area 1 Ltd. (20%), ONGC Videsh Ltd. (10%), Beas Rovuma Energy Mozambique Limited (10%), BPRL Ventures Mozambique B.V. (10%), and PTTEP Mozambique Area 1 Limited (8.5%).(macauhub)