India to Raise Oil, Gas Imports From Nigeria

MUMBAI, India plans to increase imports of crude oil and liquefied natural gas from Nigeria to meet growing energy demand, the country's oil minister said on Wednesday.
India also plans to invest in the growth of Nigeria's natural gas industry through its state enterprises, S. Jaipal Reddy, said after meeting with Foreign Minister of Nigeria affairs, Henry Hate Ajumogobia in New Delhi to discuss trade issues.
The world's second fastest growing major economy wants to increase oil imports from Nigeria to 18 million metric tons per year from 2012 to 1913 onwards, compared with 13.2 million tonnes in the year ending March 2010 due to the significant expansion of refining capacity, Mr.. Reddy said, according to a statement from the ministry of oil.
"India is interested in tying the Nigeria LNG imports immediately as a condition of the country of LNG is expected to rise by between 12 and 15 million tons per year for the foreseeable future," he said.
In 2009-10, the country's total LNG imports were 8.91 million tonnes.
the third largest economy in Asia is increasing fossil fuel imports from Nigeria at a time when civil unrest in the Middle East has oil supplies in the region at risk. This has pushed countries like India, which imports about 80% of its crude oil needs to diversify sources of fuel supply.
According to the Organization of Petroleum Exporting Countries, Nigeria gets 20% of its gross domestic product of the oil sector. Oil accounts for 95% of its foreign exchange earnings and 65% of its budget revenue, the data showed OPEC.
The ministry statement said Ajumogobia said that Nigeria LNG Ltd. is trying to dilute a game and that India's state gas utility GAIL (India) Ltd. is one of the likely candidates.
Nigeria LNG has an export capacity of 22 million tonnes per year. Its shareholders are Nigerian National Petroleum Corp., with a 49%, Shell Gas BV, a unit of Royal Dutch Shell PLC, with 25.6%, Total LNG Nigeria Ltd., a unit of Total SA, with 15% and ENI SpA with 10.4%.
The Oil Ministry said that Gail has submitted a proposal to participate in the Nigeria Gas Master Plan Project, together with petrochemical and other projects of the city gas distribution in Nigeria.
The draft master plan is designed to open the gas exploration business and economic development in the African nation.
Gail is also interested in taking a stake in Nigeria's forthcoming Brass LNG and OK LNG projects "to ensure long term supply of LNG from the African nation, the ministry said.
He added that OVL Mittal Energy Ltd. is moving forward with exploration drilling and feasibility study of a refinery in Nigeria. OVL Mittal is a joint venture of state-owned Oil & Natural Gas Corp. 's investment arm abroad and Mittal Energy.

(Source: http://online.wsj.com/article/SB10001424052748703899704576204342230625106.html)