India and Mozambique discuss possible future energy partnership

Union Minister for Petroleum and Natural Gas Hardeep Singh Puri had a meeting with Mozambique's Minister of Economy and Finance Ernesto Max Elias Tonela. The Meeting was held in Maputo on the energy sector. During the meeting, the officials emphasised the significance of energy cooperation between Mozambique and India, as reported ANI, a partner of TV BRICS.

They discussed potential investments and collaborations in the energy sector, particularly focusing on Mozambique's abundant natural gas reserves and India's increasing energy requirements. Both parties expressed a shared interest in boosting bilateral trade and investment in various areas, including oil and gas exploration, infrastructure development, and renewable energy. The primary objective of the meeting was to reinforce the existing partnership between the two countries in the energy sector and identify new opportunities for cooperation.

During the meeting between Hardeep Singh Puri and Ernesto Max Elias Tonela, the main topic of discussion centered on the funding structure for the LNG project.

Puri highlighted that the proportion of hydrocarbons in the trade relationship between India and Mozambique has exceeded 35% and has shown significant growth over the past five years. Additionally, during his visit, Hardeep visited the 7,500-hectare location where the Liquefied Natural Gas (LNG) project will be launched. In addition, the meeting highlighted the potential for Mozambique to join the Global Biofuels Alliance, as suggested by Puri. He also pointed out that the hydrocarbon trade between India and Mozambique has experienced significant growth, increasing by over two and a half times in the past five years. The trade value rose from USD 687.71 million in FY 2018-2019 to USD 1821.39 million in FY 2022-2023.

This year, India imported 19.85 million tons of liquefied natural gas (LNG), with Qatar accounting for 54% of deliveries, followed by the UAE and the United States. India aims to increase the share of natural gas in its energy structure from 6% to 15% by 2030, which will lead to an increase in LNG imports due to insufficient domestic supplies.

To solve this problem, India is looking for new sources of liquefied natural gas, and investments in Mozambique are an important step in this direction.

Photo: IStock