IOC,GAIL looking at equity stake in Africa LNG projects: Reddy
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State-owned Indian Oil Corp and GAIL Ltd are looking at picking up an equity stake in LNG projects in Africa to meet growing energy needs of the country, Oil Minister S. Jaipal Reddy said on Friday.
Hydrocarbon-rich Africa today supplies 35.31 million tonnes, or 21.5 per cent, of the nation's crude oil requirement, Reddy said at the 3rd India Africa Hydrocarbon Conference here.
"Our companies are interested in farm-in opportunities in producing blocks, especially in Libya, Algeria, Egypt and Nigeria," he said.
With natural gas demand projected to double in five years, India is looking to tie-up long-term supplies of liquefied natural gas from Africa.
"Our companies such as GAIL, Petronet LNG and IOC are interested in sourcing LNG on a long-term basis from Africa; explore possibilities of equity participation in existing/proposed LNG liquefaction projects; business opportunities in gas processing and gas-based petrochemical projects in Africa; and farm-in opportunities in producing gas blocks for conversion to LNG and dispatch to India," he said.
Reddy said India is keen to participate in exploration and production opportunities in Angola, Ghana, Sudan, Algeria, Congo, Nigeria, Uganda, Cote D'Ivoire, Mozambique, Chad, Gabon and Tanzania.
"Indian companies are also interested in farm-in opportunities in gas-producing blocks, especially Libya, Algeria, Egypt and Nigeria," he said.
India is the world's fourth-largest oil importer after the USA, China and Japan. "During the next five years, India's demand for liquid petroleum products is projected to grow at a CAGR of 4.7 per cent, while the demand for gas is expected to grow at a CAGR of 14 per cent," he said.
Presently, natural gas accounts for around 10 per cent of India's primary energy basket, as against the world average of 24 per cent.
India is increasing its LNG regasification capacity from the current 13 million tonnes per annum to 30 million tonnes by 2015.
To carry gas across the length and breadth of India, 8,000 km of gas pipelines are being laid, while another 5,000 km are in the bidding stage.
"In the years ahead, we seek more crude oil and LNG from Africa," he said. Reddy said the nation's oil refining capacity will rise from 194 million tonnes per annum currently to 238 million tonnes per annum by 2013.
"During 2010-11, India exported 50 million tonnes of refined petroleum products. With our refining capacity increasing further, this figure is likely to touch about 70 million tonnes by 2014, making India one of the world's major exporters of petroleum products," he said.
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