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)