India in talks with Angola, Algeria for LNG supplies

India is in talks with Angola and Algeria to procure liquefied natural gas (LNG) on long-term contracts, said two officials aware of the development, amid concerns of a global gas shortage fuelled by the Ukraine crisis.

The talks come even as New Delhi looks at spot purchases of LNG to meet domestic demand and fill the supply gap created by Russian energy giant Gazprom's default of its contract with state-run gas distributor Gail (India) Ltd.

The official, however, added that globally, there is a reluctance to enter into long-term contracts in the current scenario given the prevailing high prices in the spot market.

India has also sought expedited production at the 12.88-million-tonne-per-annum (mtpa) Mozambique LNG project where public sector undertakings, BPCL, ONGC and Indian Oil have a combined stake of 30%.

The project operated by TotalEnergies is under force majeure and all project personnel had to be withdrawn from the site after an attack by Islamist militants in March 2021 in the Cabo Delgado province of Mozambique.

At BPCL's annual general meeting in August, CMD Arun Kumar Singh told shareholders that with the efforts of Mozambican forces, the security situation is improving in the region, and that the project will resume once the situation stabilizes in a sustainable manner.