Oil and Natural Gas Corp (ONGC) and its partners will invest about $24 billion in producing natural gas from a giant field off Mozambique and converting it into liquid fuel (LNG) for export.

ONGC Videsh Ltd, the overseas investment arm of the state-run explorer, holds 16 per cent stake in Rovuma Area 1 where recoverable resources in excess of 75 trillion cubic feet have been established, reports Business Standard.

BPCL holds another 10 per cent and Oil India Ltd holds 4 per cent stake in the field and all three together hold more stake than operator Anadarko of the US (26.5 per cent).

"The Mozambique government has passed a decree law, paving way for start of construction work on the project. An estimated $23-24 billion will be required to bring first set of discoveries in Rovuma Area-1 on to production and convert that gas into LNG," a senior official in the consortium said.

They are planning to produce first gas from Q1 of 2020. The gas will be turned into liquefied natural gas (LNG) at an onshore liquefication plant and exported in cryogenic ships to India.

Initial plan of development of Area-1 envisage developing two LNG trains of about 6 million tonnes per annum each from the Golfinho-Atum Field in Area-1.

The project will have an ultimate capacity to produce 20 million tonnes of LNG annually and will be the world's largest LNG export site after ExxonMobil-run Ras Laffan in Qatar.

Rovuma Area-1 Offshore Mozambique Block (Block Area 1) is located along the coasts of northern Mozambique and southern Tanzania in the Indian Ocean. It has a total area of more than 10,000 square kilometers in water depths ranging from 900 metres to 1,600 metres and about 30-60 kms from shore.

Woodlands, Texas-based energy-exploration company Anadarko is the operator of the block with 26.5 per cent stake while other partners include Mitsui (20 per cent), ENH (15 per cent) and PTTEP (8.5 per cent).