OREANDA-NEWS. April 5, 2011. State-run Bharat Petroleum Corporation (BPCL) plans to build an LNG import facility and pipeline infrastructure in India to transport gas from a Mozambique block in which it holds stake with Videocon Industries. Indian energy firms are acquiring assets abroad and improving infrastructure to help meet the growing demand for energy in Asia's third-largest economy.

"We could look at setting up our own LNG import facility and also build a requisite pipeline, once we decide on the final course of action for our offshore blocks in Mozambique," said SK Joshi, director finance, BPCL.

BPCL, India's second biggest refiner, and diversified Videocon Industries have 10% stake each in the 2.6-million-acre offshore area in the deep waters of the Rovuma sedimentary basin, in Mozambique's Cabo Delgado province. US-based Anadarko is the operator of the area with a 36.5% stake. In early February, Anadarko announced its fourth natural gas discovery in the area, after a string of major deepwater natural gas discoveries.

"The Tubarao discovery well encountered more than 110 net feet (34 metres) of natural gas pay and no water in a high-quality Eocene-age reservoir, that is separate and distinct from the hydrocarbon accumulations in Anadarko's three previous discoveries in the offshore area 1 of the Rovuma Basin," BPCL said. "Currently, drill stem tests are being conducted and we should get the final appraisals from Mozambique in the next 12-15 months," Joshi said.

BPCL and Videocon had together acquired the Brazilian Oil exploration firm EnCana Brasil Petroleo . EnCana's assets include 10 deep-water offshore petroleum exploration blocks. Both companies also bought 12.5% stake each from Anadarko Indonesia in the Nunukan block in offshore Indonesia.

BPCL holds stake in 24 oil and gas blocks globally, including India. It has invested around 600 crore in Mozambique, 1,000 crore in Brazil and 100 crores in Indonesia.