Communication - Presse

India’s BPCL to Inject Further $1.8B Into Mozambique LNG Project

Quoted by The Economic Times, BPCL Chief Financial Officer VRK Gupta said the project is expected to begin gas production in mid-2028, adding that the company has already invested around $2.8 billion in the venture, which it considers strategic for strengthening its exploration and production asset portfolio and securing long-term natural gas supply.

Under the terms of the project, BPCL has signed a sale and purchase agreement to acquire one million tonnes of liquefied natural gas (LNG) per year destined for the Indian market. Gupta said the company has already initiated commercial discussions with potential customers and expects to finalise sales agreements within the coming quarters.

According to Gupta, future expansion of the facilities could raise the company’s share of production to between 4.2 million and 4.5 million tonnes per year, depending on the development of subsequent project phases.

In early July, Bharat Petroleum shareholders approved two transactions deemed material and related to the offshore Area 1 project in Mozambique. The resolutions, approved through a postal ballot concluded on 5 July, cover a structure referred to as AssetCo and a debt service commitment linked to BPRL Ventures Mozambique BV.

More than 90% of valid votes were cast in favour of the proposals. Bharat PetroResources Limited (BPRL), a wholly owned subsidiary of BPCL, entered Rovuma Basin Area 1 in 2008 during the exploration phase, through BPRL Ventures Mozambique BV.

The Mozambique LNG project at the Afungi peninsula, in the Palma district, was relaunched in January at a public ceremony attended by Daniel Chapo and Patrick Pouyanné, following five years of suspension.

The project represents an investment of approximately $20 billion and is considered the largest private venture currently under way in the country. Estimated production stands at 13 million tonnes of LNG per year, with development already around 40% complete, according to figures provided by TotalEnergies.

BPCL currently holds a 10% stake in the Mozambique LNG project. The shareholder structure also includes TotalEnergies, the project operator, with 26.5%; Mitsui, with 20%; Empresa Nacional de Hidrocarbonetos (ENH), with 15%; ONGC Videsh, with 10%; Beas Rovuma Energy Mozambique, with 10%; and PTTEP Mozambique Area 1, with 8.5%.

Source: https://360mozambique.com/oil-gas/indias-bpcl-to-inject-further-1-8b-into-mozambique-lng-project/