JOIN USThe huge natural gas discovery in a Mozambique block where Bharat Petroleum Corporation ( BPCL) and Videocon Industries are partners, will be turned into LNG at a plant to be jointly built with neighbouring gas field operator Eni SpA of Italy.
Anadarko Petroleum Corp, the operator of Offshore Area 1 where BPCL and Videocon hold 10 per cent each, and Eni will join forces to build a single liquefaction plant that will turn gas in the two fields into liquid so that it can be exports in cryogenic ships.
The plant in the Cabo Delgado province in northern Mozambique, is scheduled to start operating in 2018 with a capacity of 20 million tonnes of liquefied natural gas (LNG) per year, Anadarko said in a press statement.
The capacity will be split evenly between the Anadarko-led project and Eni's development of Offshore Area 4.
The two companies will conduct separate yet coordinated offshore activities.
The LNG complex will in time have capacity to produce about 50 million tonnes of LNG a year, Anadarko said.
Anadarko said Heads of Agreement (HOA) have been signed with Eni "establishing foundational principles for the coordinated development of the common natural gas reservoirs spanning both Mozambique's Offshore Area 1 (operated by Anadarko) and Offshore Area 4 [operated by Eni]".