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.

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.