Indian state group Bharat Petroleum Corporation Limited (BPCL) is considering building a terminal to receive liquefied natural gas (LNG) at the port of Krishnapatnam in Andhra Pradesh state, the group said in a statement.
The statement also said that the LNG floating storage regasification unit (FSRU) LNG terminal after switching from liquid to gas will require an estimated investment of US$240 million.
This project will be carried out through a partnership with Petronet LNG, in which the state group will have a controlling interest of 74%, with an initial capacity of 1 million tonnes per year, with phased increases to 3 million and 5 million tonnes per year.
The construction of this terminal is the result of the participation that the state group has in the Area 1 block of the Rovuma Basin, northern Mozambique, which contains an estimated 75 billion cubic feet of natural gas reserves and is also formally operated by US group Anadarko Petroleum Corporation, with a 26.5% stake.
Under an agreement signed between Mozambique LNG1 Company Pte. Ltd., the Block 1 partner trading company and Bharat Gas Resources, the Indian group will receive 1 million tonnes of natural gas per year.
The group holds a 10% stake in the Area 1 block through BPRL Ventures Mozambique BV, the Mozambican subsidiary of its own subsidiary Bharat Petro Resources Ltd (BPRL), which will require an investment of at least US$800 million. (Macauhub)