India's OVL in Talks to Buy LNG From Mozambique at $15

ONGC Videsh (OVL) is in talks to import LNG from Mozambique for $15 per unit, says Economic Times.

The Indian state owned firm owns minority state in Anadarko-operated gas field in the East Africa nation. It has 16% stake in the Rovuma Area-1 project.

"Price is about $13-14 (per unit) as per the consortium's pricing formula. About $1 would be additional cost for transportation etc," Economic Times quotes managing director SP Garg as saying.

The consortium's gas pricing formula is based on a combination of JCC and Henry Hub, the benchmark rates for oil and gas. The consortium has marketing rights for the fuel.

OVL is in discussion with the consortium to book some capacity, which will depend on availability of transpiration facilities, Garg said.

"India is one of the biggest LNG importers in the region. Geographically, it is natural market for the Mozambique gas, but transportation is an issue because we don't have enough LNG carriers," said Garg, reports Economic Times.

First gas from Mozambique field is expected from December 2018.

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