The 2nd India Africa Hydrocarbons Conference began on monday with India’s Petroleum and Natural Gas Minister, Mr. Murli Deora, declaring the intent of Indian organisations to source LNG as well as equity participation in existing and upcoming LNG terminals in Africa. Mr. S M Krishna, the External Affairs Minister, called for the establishment of a truly global and competitive energy market for long term benefit for producers and consumers.

Mr. Deora said, “We are a stable, long-term and growing market for Africa’s natural gas. Our companies are interested in sourcing LNG as well as equity participation in existing and upcoming LNG terminals in Africa.”

The Minister expressed India’s desire to participate in upcoming exploration and production opportunities in Angola, Ghana, Sudan, Nigeria, Uganda and Cote D’Ivoire.

“Our companies are also interested in farm-in opportunities in producing blocks especially in Libya, Algeria and Egypt. In efforts to broad base our activities, ONGC Videsh Limited is discussing setting up of a Greenfield refinery in Nigeria.” Mr. Deora added. Adding that, "India’s investment in Sudan has been mutually beneficial.

He explained further that India had emerged as a major refining hub. The total installed capacity of refineries in India is 177.97 MMTPA and is not only meeting its domestic demand of petroleum products but also exporting US$ 25 billion worth of petroleum products annually. India’s refining capacity is expected to expand much further in about three years. “We offer to the countries in Africa expertise in several fields, including in laying cross-country pipelines, setting up terminals and depots, LPG plants, and marketing & distribution of various petroleum products,” Mr. Deora pointed out.

The Minister announced that India’s premier design and engineering consultancy company, Engineers India Limited, is ready to share its expertise with Africa in areas such as petroleum refineries, petrochemicals, oil & gas processing - both onshore and offshore and pipelines.

His words: " In recent years, India has invested in exploration and production of oil & gas in Sudan, Nigeria, Libya, Egypt, Gabon, Congo Brazzaville, Nigeria-Sao Tome Joint Development Zone (JDZ) and Equatorial Guinea. India is a big consumer of crude oil from Nigeria, Angola, Egypt and Sudan, to mention just a few African countries. “Our depth of engagement with Africa has grown as our companies are present in retail of petroleum products, building of storage terminals and refinery upgradation in Africa. We are also engaged in city gas distribution and CNG projects. Our training facilities and consultancy services in the hydrocarbon sector have been availed successfully by a few countries in Africa. We want to develop this cooperation further.” Shri Krishna pointed out that, the global energy trends suggested that the demand for oil had peaked in the developed world. The new global claimants for oil are now located in Asia, including India, where a rapidly growing economy is driving demand for energy. India would need to depend upon 90% oil and 60% gas imports by 2030-31.

Presently, about 15 percent of India's crude oil imports came from Africa. He added , “We remain hopeful of success at Copenhagen in achieving an outcome, containing substantive and enforceable commitments which are equitable and supportive of economic growth, especially in developing countries. India has conceived its response to Climate Change, as part of a broader strategy for ensuring sustainable development. Our objective is to bring about changes in the kinds of energy we produce and consume, while remaining mindful of our resources constraints, environmental concerns and imperatives of economic development.”

Presidential Adviser on Energy Matters, Federal Republic of Nigeria, Dr. Emmanuel Egbogah invited Indian companies to operate in the Nigerian oil and gas sector; expressing confidence that Indian investments in Nigeria would be profitable while and also secure India’s energy supply needs. He said, Nigeria is undertaking a comprehensive reform of its oil and gas industry and proposes to deregulate its downstream sector.

These reforms would create opportunities for foreign companies to take part in the development of the Nigerian and other African economies.