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INDIA,MOZAMBIQUE : BPCL to invest $400 million to build LNG terminal in Mozambique
Publish Date : 22-Sep-2011
State-owned Bharat Petroleum Corporation Limited (BPCL) will partner $4 billion liquefied natural gas ( LNG) terminal in Mozambique and will invest $400 million for its 10% stake in the project. Besides, India\'s third biggest refiner plans to set up $1.3 billion petrochemicals complex, adjacent to its Kochi refinery.
Confirming this move, D Rajkumar, managing director of BPCL\'s wholly owned subsidiary Bharat PetroResources (BPRL), said, \'We have world class natural gas discovery in Mozambique, with recoverable potential of 6 trillion cubic feet. The consortium partners are planning to set up LNG facility costing $4 billion to monetize the gas reserves and we will invest $400 million in the facility.\'
The consortium partners have selected global engineering, construction and services company KBR to perform a pre-front-end-engineering and design (pre-FEED) study for a prospective LNG plant in Mozambique, Africa. BPCL has earmarked a fourth of its Rs40,000 crore capital expenditure for upstream projects. Out of this most will be invested for developing the offshore Rovuma Basin gas field in Mozambique. As part of its diversification strategy, BPCL board has approved setting of $1.3 billion petrochemicals complex in Kochi to become an integrated energy major.
Six blocks in the deep water Rovuma Basin, off the Mozambique coast in southern Africa, are each owned by Bharat Petro Resources (BPRL), a wholly-owned subsidiary of BPCL and Videocon Hydrocarbon Holdings Ltd, a wholly-owned subsidiary of Videocon Industries Ltd, with 10 per cent stakes.
\'We are in talks with at least four international majors to dilute stake in this petrochemicals project. The idea is to get high-end technology for this project, which requires putting up secondary processing facilities that can support future integration of the refinery with the petrochemical complex,\' BPCL chairman and MD R K Singh said.
Even after revision in petrol prices by Rs3, projected under recoveries for the corporation is pegged at Rs27,000 for this fiscal. BPCL\'s borrowings stood at Rs23,500 crore and the firms looks to borrow more funds to manage its working capital requirements.
