BPCL Secures 1 Million Tonnes of LNG from Future Mozambique LNG Project

State-run Bharat Petroleum Corporation (BPCL) has finalized an agreement for the supply of 1 million tonnes (mt) of liquefied natural gas (LNG) from the anticipated $20-billion project in Mozambique. The project, expected to commence operations by FY28, is a significant venture in which BPCL subsidiary Bharat PetroResources (BRPL), through its Netherlands-based step-down subsidiary BPRL Ventures Mozambique, holds a 10 percent participating interest (PI).

BRPL, in collaboration with ONGC Videsh (OVL) and Oil India (OIL), collectively commands a 30 percent stake in the project, which is spearheaded by Total Energies. The project had faced a temporary halt in March 2021 when Total Energies declared force majeure due to attacks by Islamic State-linked insurgents on civilians in Mozambique's northern Cabo Delgado province, where the natural gas project is situated.

As per BPCL management's announcement during a results call on Tuesday, work on the project is anticipated to recommence by July this year. The project boasts a substantial reserve of 64 trillion cubic feet (TCF) and is designed with a capacity of 13 million tonnes per annum (mtpa).

HBL