ONGC Videsh gets FID for Mozambique LNG project

ONGC Limited’s wholly-owned subsidiary ONGC Videsh Limited has announced that Rovuma Offshore Area 1 consortium, has taken a Final Investment Decision (FID) for the two trains Golfinho/Atum Mozambique LNG Project. The FID denotes that the LNG project will now advance to the construction phase.

Mozambique LNG Project will be the first onshore LNG facility in Mozambique consisting of initial two LNG trains with a total capacity of 12.88 million tonnes per annum (MMTPA) supported by the development of the Golfinho/Atum fields located offshore entirely within Area 1.

The project has successfully secured in aggregate 11.1 MMTPA of long-term LNG sales which is 86 per cent of the plant's capacity with key LNG buyers in Asia and in Europe. Additionally, the project will have a significant domestic gas component for in-country consumption in Mozambique to help fuel economic development.

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 6 per cent interest is held through its 60 per cent shareholding in 'Beas Rovuma Energy Mozambique Limited' (BREML) while the remaining 40 per cent shares in BREML are held by Oil India Limited (OIL).

On Wednesday, the stock of ONGC opened at Rs. 165.70 per share. During the afternoon trading session, it was down by 0.66 per cent at Rs. 164.75.