BPCL examines Swan FSRU for Mozambique LNG

Vol 16, PW 1 (26 Jul 12) People & Policy

Gas from Anadarko’s Rovuma basin discovery off Mozambique could eventually end up supplying homes and businesses in Punjab.

Bharat Petroleum, which partners Anadarko at deepwater block Offshore Area-I, last month began due diligence of Swan Energy’s proposed Pipavav FSRU off Gujarat to decide whether to take a stake. BPCL wants to import Mozambique LNG at Pipavav from where it can be regasified into R-LNG and transported through the upcoming 1670-km pipeline from Mehsana in Gujarat to Bhatinda in Punjab.

“We want to bring Mozambique gas to India,” confirms a BPCL source. “The African market is not promising.

” Anadarko last month announced Offshore Area-1 could hold up to 60-tcf total recoverable gas. “But the upside for total in-place gas at discovered reservoirs is approaching 100-tcf,” we hear.

Anadarko wants to set up a liquefaction facility in Mozambique to export LNG and wants to commission the first 5m t/y train by 2018 and another 5m t/y train by 2020. BPCL says a Final Investment Decision will be taken next year.

Swan’s proposed 3m t/y to 4.5m t/y FSRU at Pipavav is scheduled to be ready in 2014. BPCL is already part of the Gujarat State Petronet (GSPL)-led consortium implementing the Mehsana to Bhatinda pipeline project.

Earlier this month (July), GSPL began in-house due diligence on the Pipavav FSRU. It is likely the pipeline consortium of GSPL, BPCL, Hindustan Petroleum and IndianOil might jointly take a combined stake in the FSRU but this is yet to be confirmed.

“We will not take a stake alone,” says GSPL. “We will go ahead at Pipavav only if BPCL agrees to go ahead.