Identifies investment opportunities in Algeria, Nigeria, Mozambique and Egypt
Betting big on the African region and the huge potential it holds in the shape of natural gas and LNG reserves, GAIL (India) has identified investment opportunities in Algeria, Nigeria, Mozambique, Egypt and Tanzania.
The matter came up for discussion during the meeting of the board of directors of GAIL on September 26 following a report submitted by GAIL’s Representative Office in Cairo (GROC).
Since gas consumption was very low in the African region as compared to the proven gas reserves/production, the board felt, the region offered the company huge opportunities to source LNG, and also to participate in upstream and downstream projects.
The investment and project participation opportunities identified by GAIL (India) include tying up for sourcing of LNG for spot cargo on a mid- and long-term basis with state-owned hydrocarbon giant Sonatrach of Algeria, Nigeria LNG Limited (NLNG) of Nigeria and Angola LNG of Angola. onatrach and NLNG offered rich gas, it was pointed out.
The board was also informed by GROC that some new sources of LNG, expected to become operational by 2017 onwards in Mozambique, Israel, Nigeria (NNPC) and Tanzania, could be used for participation for spot cargos on FOB basis.
The issue of setting up LPG/petrochemical greenfield project in Nigeria based on assured supply of natural gas from Shell, Nigeria, could also be a great investment opportunity, the board was told.
The board was also informed by GROC that Nigeria and Mozambique could be strategic countries for meeting the long-term requirement of LNG in India. Engagement with these countries through their national oil and gas companies for developing gas infrastructure would facilitate GAIL in its objective of LNG sourcing.
GAIL is also working with National Gas Company (NATGAS) and natural gas local company Fayum Gas to initiate and execute city gas/CNG project in Egypt.