India-Mozambique LNG Project: Energy Security Initiative

India and Mozambique are discussing the restart of a significant $20 billion Liquified Natural Gas (LNG) project. The project, situated in Mozambique’s Cabo Delgado province, holds strategic importance for India’s energy security, as three Indian Public Sector Undertakings (PSUs) hold a 30% stake.
Hardeep Singh Puri, India’s Union Minister for Petroleum and Natural Gas, recently engaged in diplomatic discussions to revitalize the project, which had been halted due to militant attacks and force majeure claims by TotalEnergies, the primary operator.

1. Strategic Importance: This project is vital for India’s energy diversification plans, especially in light of the Indian government’s aim to increase the share of natural gas from 6% to 15% by 2030.

2. Geopolitical Benefit: Mozambique offers an alternative to Middle East energy sources, eliminating some geopolitical risk factors. Moreover, its proximity to India’s west coast makes it logistically convenient.

3. Force Majeure: The pause in 2021 came after TotalEnergies cited force majeure due to attacks by militants tied to the Islamic State.

4. Action Plan: A May 2023 report offered recommendations for improving local living conditions, and TotalEnergies pledged to implement an action plan based on these findings.

5. Indian Stake: Indian PSUs ONGC Videsh, Oil India, and Bharat Petro Resources Limited collectively hold a 30% stake. Their involvement marks an assertive move by India to secure diverse and strategic energy sources.

6. Future Prospects: With the ongoing dialogue and strategic importance, a successful restart could significantly boost LNG availability in India and further diversify its energy mix.

The project presents an opportunity for India to secure a long-term, reliable source of natural gas, aligning with its focus on sustainable and diversified energy resources. The discussions indicate proactive efforts from both nations to bring this key project back on track.

SRIRAM’s