India has expressed interest in Ghana’s oil industry, according to officials in the Indian government.
State-owned Indian Oil Corporation (IOC) and GAIL Limited are said to be companies gunning for a stake in Ghana’s oil business.
According to a report by Press Trust of India on December 9, 2011, S. Jaipal Reddy, India’s Oil Minister, said at the 3rd India-Africa Hydrocarbon Conference in New Delhi that India is keen to participate in exploration and production opportunities in Ghana as well as other African states like Angola, Sudan, Nigeria and Cote d’Ivoire.
According to Jaipal Reddy, the IOC and GAIL are also looking at picking up an equity stake in Liquefied Natural Gas (LNG) projects in Africa to meet the growing energy needs of India.
“Our companies such as GAIL, Petronet LNG and IOC are interested in sourcing LNG on a long-term basis from Africa; explore possibilities of equity participation in existing/proposed LNG liquefaction projects; business opportunities in gas processing and gas-based petrochemical projects in Africa; and farm-in opportunities in producing gas blocks for conversion to LNG and dispatch to India,” Press Trust of India quoted Reddy as saying.
“In the years ahead, we seek more crude oil and LNG from Africa,” he added.
India is the world’s fourth-largest oil importer after the US, China and Japan and it is estimated that in the next five years, India’s demand for liquid petroleum products will grow at a compound annual growth rate (CAGR) of 4.7%, while the demand for gas is expected to grow at a CAGR of 14%.
At present, natural gas accounts for around 10% of India’s primary energy basket, as against world average of 24%, according to the Press Trust of India.