ONGC, its partners developing LNG terminal in Mozambique.

In a step towards start of gas production from its giant Mozambique gas fields, state-owned ONGC and its partners have awarded contract for development of an onshore LNG terminal.

About 75 trillion cubic feet of natural gas reserves found in offshore Rovuma Area-1, where Indian firms led by ONGC Videsh Ltd hold a total of 30 per cent stake, are to be converted into LNG for transportation by ships to consuming nations like India.

US firm Anadarko Petroleum Corp, the operator of the block, in a statement announced the selection of a consortium consisting of CB&I, Chiyoda Corporation and Saipem (CCS JV) for the initial development of the onshore LNG park in Mozambique.

'Selecting CCS JV for the development of the onshore Mozambique LNG park is a significant step toward reaching FID (Final Investment Decision) and demonstrates our continued commitment to advancing this important project toward first cargoes,' said Anadarko Chairman, president and CEO, Al Walker.

The onshore LNG park includes two LNG trains, each with capacity of 6 million tons per annum, which is an increase of 1 million tons per train over the original plan.

TIMES OF INDIA