India’s Strategic Move: Reviving the Mozambique LNG Project

Current Affairs, International Relations

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Recently, the $20 billion LNG project in Mozambique was the subject of a major diplomatic trip led by the Union Minister for Petroleum and Natural Gas. This project, which is located in the province of Cabo Delgado in the north, is extremely important strategically for India’s efforts to become energy self-sufficient.

Mozambique LNG Project

  • 2010 saw the discovery of significant natural gas deposits off the coast of northern Mozambique, which gave rise to the project.
  • Resource Abundance: With an initial production rate of 12.88 million tonnes of LNG annually, the Area 1 block holds approximately 75 trillion cubic feet (Tcf) of recoverable gas, indicating a resource life of around 120 years.
  • Indian Involvement: The Mozambique LNG project is 30% owned by three public sector undertakings (PSUs) in India.
  • Strategic Location: Mozambique’s importance as a preferred source for LNG supply is increased by its geographic proximity to India’s west coast, which is home to several LNG installations.
  • Satisfying Indian Demand: LNG imports are essential to India’s goal of increasing the proportion of natural gas in its energy mix. Currently, 50% of India’s natural gas requirements are imported.

Challenges and Recent Developments

  • Operational Halt: In April 2021, Total Energies halted project operations because of security concerns.
  • Humanitarian Assessment: Jean-Christophe Rufin carried out a humanitarian trip in December 2022 and made recommendations for how to deal with regional problems.
  • Indian Diplomatic Efforts: Since May 2023, India has made a concerted effort to relaunch the project and include project partners.
  • Geopolitical Significance: The Mozambique LNG project is strategically significant since India’s reliance on Qatar as a major LNG supplier faces difficulties.

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