- India will double its investment in the Mozambique’s Rovuma gas field by spending another $6 billion by 2019, said oil minister Dharmendra Pradhan who has returned from a visit to the African nation.
- State-run firms ONGC Videsh, Oil India and Bharat Petroleum have already invested that much in the field and hold a combined 30% interest in the Rovuma Area-1, which is estimated to have recoverable gas reserves of up to 75 trillion cubic feet.
- The Rovuma field will have its first output on the market by 2019. India may or may not import liquefied natural gas (LNG) from Rovuma fields and the decision to import will depend on the market situation, including the price available to gas produced in Mozambique.
- Mozambique is an important destination for India’s energy security .
- India desperately needs gas to power its electricity generation, which has been far below the country’s requirement.
- The government recently announced a policy to offer subsidised imported gas to about 24,000 MW of gasfired plants lying idle or underutilised.
- India’s gas production has fallen far short of expectation in the past few years, making unviable many gas-based power plants that were built on the hopes of securing cheap local gas.