In a recent update, G. Krishnakumar, Chairman and Managing Director (CMD) of Bharat Petroleum Corp. Ltd (BPCL), announced that the TotalEnergies-operated liquefied natural gas (LNG) project in Mozambique, where Indian oil companies hold a 30% stake, is expected to resume operations in 2024. This significant development comes after a period of uncertainty and delay caused by geopolitical and security challenges.

Indian Stake in the Mozambique LNG Project

The LNG project in Mozambique, known as the “Initial 2-Train LNG Project in Area 1,” is a major endeavor aimed at unlocking approximately 63 trillion cubic feet of world-class gas resources. Indian state-run companies hold a substantial stake in this venture:

ONGC Videsh: 16%

BPCL Ventures Mozambique BV (a BPCL subsidiary): 10%

Oil India Ltd: 4%

Total E&P Mozambique Area 1 Limitada, a subsidiary of TotalEnergies, holds a 26.5% stake and is the operator of the plant.

Challenges and Prospects

Operations at the project’s site in the coastal town of Palma were suspended in April 2021 following attacks by Islamic State terrorists. The resumption of operations is now contingent upon the outcome of the upcoming Mozambican presidential elections scheduled for October 9, 2024. The elections will significantly influence the future of the project and its progress.

BPCL’s Strategic Focus

In addition to the Mozambique LNG project, Krishnakumar highlighted BPCL’s broader strategic framework, ‘Project Aspire,’ which encompasses a five-year plan involving a substantial capital expenditure of ₹1.7 trillion. This includes:

₹75,000 crore allocated for refineries and petrochemicals.

Investments in global oil and gas projects, including the BM-SEAL-11 project in Brazil and the Ruwais field in the UAE.

Market Impact

On the stock market front, BPCL shares closed at ₹357.35 on Friday, marking a 0.25% increase from the previous close. This reflects positive investor sentiment amid the forthcoming developments in the Mozambique LNG project and BPCL’s strategic investments.

This update underscores the ongoing efforts and strategic moves by BPCL and its partners to advance significant global energy projects, despite geopolitical and security challenges.

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