Central Idea
- Union Minister for Petroleum and Natural Gas recently undertook a significant diplomatic mission to review the $20 billion liquefied natural gas (LNG) project in Mozambique.
- This project, situated in the northern Cabo Delgado province, holds immense strategic importance for India’s quest for energy self-sufficiency.
Mozambique LNG Project
- Discovery in 2010: The project originated in 2010 with the discovery of substantial natural gas reserves off the northern Mozambique coast.
- Resource Abundance: The Area 1 block holds around 75 trillion cubic feet (Tcf) of recoverable gas, promising a resource life of about 120 years with an initial production rate of 12.88 million tonnes of LNG per year.
- Indian Involvement: Three Indian public sector undertakings (PSUs) hold a 30% stake in the Mozambique LNG project.
- Strategic Location: Mozambique’s geographical proximity to India’s west coast, with numerous LNG terminals, enhances its significance as a preferred source for LNG supply.
- Meeting Indian Demand: India aims to increase the share of natural gas in its energy mix, with LNG imports playing a crucial role. India currently imports approximately 50% of its natural gas needs.
Challenges and Recent Developments
- Operational Halt: TotalEnergies suspended project operations due to security concerns in April 2021.
- Humanitarian Assessment: A humanitarian mission was conducted by Jean-Christophe Rufin in December 2022, recommending actions to address local issues.
- Indian Diplomatic Efforts: India has actively sought to engage project partners and restart the project since May 2023.
- Geopolitical Significance: India’s reliance on Qatar as a major LNG supplier faces challenges, making the Mozambique LNG project strategically important.
