Three Public Sector Companies(PSUs), Oil and Natural Gas Corp, Bharat Petroleum and Oil India made a final investment decision last year to spend about $15 billion on developing gas fields and liquefaction project in Mozambique. The three have a combined 30% participating interest in the Mozambique gas project. After a long delay, the work has started and the Indian PSUs reportedly have begun transmitting their share of payment. The full contribution is spread over four years.
 According to the plans, about 60% of the project cost will be funded by debt and the balance 40% will be shared as equity contributions by all stakeholders. Of the $6 billion equity component, Indian firms will contribute about 30% or less than $2 billion. According to sources, ONGC, which owns 16% in the project, will have to pay about $1 billion while BPCL and Oil India with their 10% and 4% interest, respectively, will contribute a little less than $1 billion together.
The French energy giant, Total, acquired last year 26.5% stake for $3.9 billion and is the operator of the project. According to Total, the project is expected to start production by 2024. The project which was initially expected to start production in 2018, was delayed due to multiple factors such as the collapse in the oil and gas market that began in 2014, and a supply glut in LNG market. Experts point out that the LNG market has saturated due to the proliferation of liquefaction projects across the globe with little hope for the recovery of LNG prices in the near future. However, the project has been able to sell almost 90% of its production through long-term contracts with LNG buyers in Asia and Europe
Other stakeholders include Japan’s Mitsui with 20%  share and  ENH (15%) and PTTEP Mozambique Area 1Ltd (8.5%).The project covers the development of the Golfinho and Atum fields located within Offshore Area 1 and the construction of a two-trains liquefaction plant with a capacity of 12.9 million tonnes per year.
