India is planning to source LNG from Nigeria, and is looking for a technology tie-up in the power sector in Nigeria, a power starved nation. In return, India wants to source LNG at a competitive price, since Nigeria has abundant oil and gas reserves, disclosed S.K. Jain, Executive Director (LPG), Bharat Petroleum Corporation Ltd, at a conference on 'Power Sector Financing' organised by the Bombay Chamber of Commerce & Industry in Mumbai last week.
Representatives of various industrial groups from Nigeria, including Corn Group and Sahara Group, have been visiting India for talks on technology tie-up in the power sector. Indian companies like Tata Power Company Ltd, Reliance Industries and NTPC have approached Nigerian companies for talks on the tie-up. "We would be able to source LNG at a cost which would be 50 per cent cheaper," said Jain.
Nigeria produces 150 million metric tonnes of oil. Talks with government officials of the two countries are in progress. It would take about six months to one year to take a final decision on the negotiations. If all ends well, BPCL will also set up a LNG processing plant in Nigeria.