ONGC Videsh Ltd. (OVL), the overseas arm of India’s national oil company, has approved a ₹1,500 crore investment to drive the development of its joint venture in Mozambique’s offshore gas reserves. This significant funding will support the Mozambique Area 1 LNG project, a $20 billion initiative in which OVL holds a 10% stake.
While the project has faced delays due to security concerns in the region, it is now ready to advance following the expected lifting of force majeure status by project operator TotalEnergies in the near future. Targeting an impressive 75 trillion cubic feet of recoverable gas reserves, the Mozambique LNG project involves the construction of two liquefaction units with an annual capacity of 13 million tons per year. Industry experts anticipate that this development will have a substantial influence on global LNG markets once operational.
The project represents a major step forward in energy development for Mozambique and highlights India’s growing investments in Africa’s energy sector, particularly in natural gas resources that are seen as critical transition fuels in the global energy landscape.
Source: energycapitalpower.com
