Mint: OVL says Mozambique LNG not Viable at Under $9-10 per mmBtu

The natural gas sold from the yet-to-be-built liquefied natural gas (LNG) terminal at Mozambique will not be viable at a price below $9-10 per million metric British thermal units (mmBtu), said N.K. Verma, managing director, ONGC Videsh Ltd (OVL).

He was talking to the media at the sidelines of an event in Mumbai.

Indian companies, along with OVL, hold a 30% stake in the Offshore Area 1, Rovuma Basin in Mozambique. The project, which has natural gas reserves of 75 trillion cu. ft (tcf), also includes a 10 million tonnes per annum (mtpa) LNG terminal expected to be ready by 2019.

Verma said the partners have already signed agreements for selling 8.5 mtpa of gas from the terminal, but negotiations on the price point are still on. MORE