OVL in Talks to Buy LNG from Mozambique

ONGC Videsh (OVL), which holds a small stake in Anadarko-operated giant gas field off Mozambique, is reportedly in negotiations with the consortium to buy liquefied natural gas.

“Price is about $13-14 (per unit) as per the consortium’s pricing formula. About $1 would be additional cost for transportation etc,” The Economic Times cited OVL‘s managing director SP Garg as saying.

ONGC Videsh has a 16% stake in the Rovuma Area-1 project in Mozambique, which has the potential to become one of the world’s largest LNG producing hubs and is strategically located to supply LNG to the growing Indian gas market.

Area 1 covers approximately 2.6 million acres in the deep-water Rovuma Basin, and represents the largest natural gas discoveries in offshore East Africa with estimated recoverable resources of 45 to 70 trillion cubic feet.

[mappress]

LNG World News Staff, April 7, 2014; Image: Anadarko