Oil and Natural Gas Corp (ONGC), Bharat Petroleum Corp Ltd (BPCL) and Oil India Ltd (OIL) on Wednesday has announced that it will invest around $20 billion to construct a gas liquefaction and export terminal in the African nation of Mozambique. This is an effort to monetize the offshore natural gas reserves that they have discovered in the country.

ONGC Videsh Ltd., along with its Indian and foreign partners, filed exchange disclosures that said their subsidiaries, along with US-based Anadarko Petroleum, have taken a final investment decision (FID) for Area-1 of the Mozambique LNG project. This will consist of two LNG trains with a total nameplate capacity of 12.88 million tonnes per annum, with feedgas coming from the Golfinho/Atum field in Offshore Area 1.

The project, which will be built on the Afungi peninsula in Cabo Delgado province, will also involve the construction of associated infrastructure, storage tanks, and export jetty facilities. The project is planned to be commissioned by 2024.

“OVL, a wholly owned subsidiary of ONGC, the national oil company of India, announces that Rovuma Offshore Area-1 consortium has taken an FID for the two trains Golfinho/Atum Mozambique LNG Project,” the company said.

OVL holds a 16 per cent interest in Mozambique Rovuma Area-1 offshore project, while OIL holds 4 per cent stake. Bharat PetroResources Ltd, owned by BPCL, holds a 10 per cent interest and Anadarko holds a 26.5 per cent interest. Japanese company Mitsui has 20 per cent and Mozambique’s state energy company ENH has 15 per cent interest, with the remaining 8.5 per cent owned by Thailand’s PTT.

Anadarko and its partners have locked in long-term sales and purchase agreements (SPAs) for a total of 11.1 million tonnes per year. SPAs include ones signed with Tokyo Gas, Centrica, Shell, China’s CNOOC, France’s EDF and Indonesia’s Pertamina, among others.

“Additionally, the project will have a significant domestic gas component for in-country consumption in Mozambique to help fuel the economic development,” the OVL statement said,

“The FID signifies that the Golfinho/Atum Mozambique LNG project will now advance to the construction phase,” it added.