ONGC Videsh Limited signs pacts to sell 9.5 mn tonnes of LNG

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ONGC Videsh Limited signs pacts to sell 9.5 mn tonnes of LNG

The remaining 40 per cent in BREML is held by Oil India Limited. Currently, ONGC Videsh has 41 projects spanning across 20 countries.

ONGC Videsh Limited (ONGC Videsh), a wholly owned subsidiary of state explorer ONGC, has struck long-term agreements to sell 9.5 million tonnes a year of liquefied natural gas (LNG) from their Mozambique Rovuma Offshore Area 1 project, and will take a final investment decision for the project in the first half of 2019, the state-run explorer said in a statement.

Strategically located off the East Coast of Africa, the Mozambique Rovuma Offshore Area 1 project is ONGC Videsh’s key natural gas project. “The project is progressing towards developing initially an onshore LNG plant consisting of two LNG trains with total nameplate capacity of 12.88 million metric tonnes per annum (MMTPA) to support the development of the Golfinho-Atum field located entirely within Offshore Area 1,” ONGC said.

“With the approval of the development plan in February 2018, ongoing resettlement implementation activities, site preparation and execution of these sale purchase agreements, the project is poised to take final investment decision in H1 2019,” it added.

ONGC and other project developers have entered into an agreement with Tokyo Gas and Centrica LNG Company for sale of 2.6 MMTPA from the start of production until the early 2040s. Other sale agreements include 1.5 mmtpa for 13 years with CNOOC, 2 MMTPA for 13 years with Shell; one MMTPA for 15 years with BPCL, and one MMTPA for 20 years with Indonesia’s Pertamina.

ONGC Videsh holds 16 per cent interest in the Mozambique Rovuma Area-1 Offshore Project out of which 10 per cent is held directly by ONGC Videsh and another six per cent interest is held through its 60 per cent shareholding in Beas Rovuma Energy Mozambique Limited (BREML). The remaining 40 per cent in BREML is held by Oil India Limited. Currently, ONGC Videsh has 41 projects spanning across 20 countries.

Key natural gas project off coast of Mozambique

Mozambique Rovuma Offshore Area 1 project is to initially consist of an onshore LNG plant with 12.88 mn tonnes per annum capacity

With the approval of the development plan in February 2018, the project is poised to take final investment decision in H1 2019d

ONGC and other project developers have entered into an agreement with Tokyo Gas and Centrica LNG Company for sale of 2.6 MMTPA from the start of production until the early 2040s

ONGC Videsh holds 16 per cent interest in the Mozambique Rovuma Area-1 project

http://www.newindianexpress.com/business/2019/feb/28/ovl-signs-pacts-to-sell-95-mn-tonnes-of-lng-1944724.html

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