BPCL Secures 1 Million Tonnes of LNG in Mozambique Megadeal

State-run Bharat Petroleum Corporation (BPCL) has recently formalized an agreement securing the supply of 1 million tonnes (mt) of liquefied natural gas (LNG) from the anticipated $20-billion project in Mozambique. The venture, projected to initiate operations by the fiscal year 2028, holds strategic importance for BPCL, with its subsidiary Bharat PetroResources (BRPL) and its Netherlands-based step-down subsidiary BPRL Ventures Mozambique having a 10 percent participating interest (PI).

Collaborating with ONGC Videsh (OVL) and Oil India (OIL), BRPL collectively commands a 30 percent stake in the project, led by Total Energies. The project encountered a temporary setback in March 2021 when Total Energies declared force majeure, citing attacks by Islamic State-linked insurgents on civilians in Mozambique's northern Cabo Delgado province, the location of the natural gas project.

BPCL management, in a recent results call on Tuesday, disclosed that work on the project is expected to resume by July this year. The project, featuring a substantial reserve of 64 trillion cubic feet (TCF), is designed with a production capacity of 13 million tonnes per annum (mtpa).

News by rahul Yelligetti