ONGC Videsh, the overseas arm of India’s state-owned oil and gas major ONGC, has cleared an investment of Rs 1,500 crore in its Mozambique joint venture (JV), signaling a major step forward in the development of liquefied natural gas (LNG) assets in the region. The decision marks a significant move for ONGC Videsh as it looks to expand its global footprint and tap into the growing demand for LNG.
Mozambique, a country located on the southeastern coast of Africa, has become an important player in the global LNG sector due to its vast natural gas reserves discovered offshore in the Rovuma Basin. ONGC Videsh holds a stake in the Area 1 block of the Rovuma Basin, a resource-rich area that is expected to become a major supplier of LNG. The joint venture with other international players such as Anadarko Petroleum and Empresa Nacional de Hidrocarbonetos (ENH) is poised to deliver substantial returns as the global demand for cleaner energy sources continues to rise.
With the Rs 1,500 crore infusion, ONGC Videsh is focused on accelerating the development of the necessary infrastructure for LNG production and export, especially to Asian markets, which are expected to drive LNG demand in the coming decades. The Mozambique project is part of India’s broader strategy to secure energy resources abroad to meet its growing consumption needs.
As part of the JV’s strategic plan, the Mozambique LNG project aims to produce and export natural gas in the form of liquefied natural gas (LNG) from the offshore fields. The first phase of the project, expected to come online soon, will focus on developing the offshore gas fields and constructing the necessary liquefaction facilities. This development will provide a significant boost to ONGC Videsh’s overall portfolio and strengthen its position in the global LNG market.
The Rs 1,500 crore investment comes at a time when the global LNG industry is undergoing substantial changes. With major players looking to diversify their sources of LNG supply, Mozambique stands out as a country that could meet the increasing demand for LNG, particularly in the growing energy markets of Asia.
In a statement, ONGC Videsh emphasized the importance of the Mozambique project not only for the company’s business strategy but also for strengthening India’s energy security. This investment represents a critical step in our global portfolio expansion and aligns with our commitment to ensuring a secure and sustainable energy future for India, said an ONGC Videsh spokesperson.
The Mozambique LNG project will also contribute to the local economy by creating jobs and fostering infrastructure development, benefiting the broader region. As the joint venture moves forward, the hope is that it will further unlock the potential of Mozambique’s energy sector, attracting more foreign investments and helping the country achieve its long-term energy goals.
With the expected progress in LNG production and export, ONGC Videsh’s Mozambique JV is set to play a pivotal role in meeting global LNG demand and in reinforcing India’s energy security through international collaborations and investments. As the project advances, stakeholders are closely monitoring developments, hopeful of the positive impact it will have on both the Indian and global energy landscapes.
