New Gas Find in Mozambique Bodes Well for India

Report of new gas discovery in Mozambique's oil-rich Rovuma Basin, where Indian firms hold stakes, is being seen as good news for energy starved India.

According to Anadarko Petroleum, operator of the block, Rovuma Basin may hold close to 100 trillion cubic feet (tcf) of natural gas. India's Videocon and Bharat Petroleum Corp also hold stakes.

The new discovery would make the basin's reserves 20 times the size of India's KG-D6 and make Mozambique a major exporter of liquefied natural gas (LNG).

The two Indian firms hold combined 20% stake in the block and plan to transport and market this gas in India.

Earlier this year, the Economic Times had reported that representatives of Texas-based Anadarko has had preliminary discussions with various Indian state owned energy firms to understand the modalities of joint investments in setting up downstream infrastructure to transport and market the gas produced in the Rovuma basin to India.

Videocon Industries is also interested in selling gas in the Indian market and is having discussions with its foreign partners who are keen to target India gas market.