India is currently reevaluating a significant $20 billion liquefied natural gas (LNG) venture located in Mozambique. This project features the active participation of three Public Sector Undertakings (PSUs), each holding a 30% ownership stake in the venture. The undertaking holds a pivotal strategic position in India’s efforts to attain self-reliance in the energy sector.
During his three-day visit to Mozambique, Union Minister Hardeep Singh Puri undertook a visit to the LNG project site situated in the Cabo Del Gabo province. He was joined by Mozambique’s Minister of Mineral Resources and Energy, Ernesto Max Elias Tonela. Furthermore, Minister Puri had a meeting with Mozambique’s President, Filipe Nyusi, during which they engaged in discussions regarding the enhancement of bilateral cooperation in the field of energy.
Referred to as the Rovuma LNG project or the Area 4 Project, this initiative represents a collaboration among five entities. It includes a consortium of three prominent Indian Public Sector Undertakings (PSUs): ONGC Videsh Limited (OVL), Bharat Petroleum Corporation Limited (BPCL), and Oil India Limited (OIL), which collectively possess a 10% stake in the project. The primary objective of this venture is to produce a substantial 15.2 million tonnes per annum (MTPA) of liquefied natural gas (LNG) sourced from the offshore Mamba gas field located in the Rovuma Basin.
This LNG project is anticipated to stand as one of the most substantial foreign direct investments in Africa, with a projected cost of approximately $20 billion. It carries the potential to generate numerous employment opportunities and contribute significantly to Mozambique’s revenue, bolstering its economic prospects.
This project plays a pivotal role in advancing India’s quest for energy self-reliance. It offers India a valuable chance to expand its sources of energy imports beyond its heavy reliance on Qatar. Historically, India has predominantly depended on Qatar for its energy imports. The collaboration with the Area 1 project in Mozambique represents India’s ticket to diversify its energy sources and strengthen its relationships with nations from the Global South. This, in turn, has the potential to rejuvenate domestic economic development and fortify India’s energy security.
Mozambique is 2nd largest upstream investment destination for India.
In my meeting with Maxime Rabilloud of @TotalEnergies in Maputo we discussed resumption of operations at $20 billion LNG Project, largest project investment in Africa with huge potential for 🇮🇳’s energy security pic.twitter.com/QaiDn7LImo
— Hardeep Singh Puri (@HardeepSPuri) October 29, 2023