BPCL to invest $1.8 billion in Mozambique gas
By the AFREEQUE newsroom, based on Club of Mozambique
Bharat Petroleum Corporation plans to invest an additional $1.8 billion in its Mozambique gas project, bringing its total commitment to $4.5-$4.6 billion. Production is due to begin in mid-2028, while the company is already marketing 1 million tonnes of gas a year to India, according to Club of Mozambique.
Bharat Petroleum Corporation Ltd, the Indian state-owned oil company, plans to invest an additional $1.8 billion in its gas project in Mozambique over the coming years. This would bring its total investment, including exploration, to $4.5 billion or $4.6 billion, its chief financial officer, V. R. K. Gupta, said, according to Reuters.
The project was 47% complete in September 2026 and gas production is due to begin in mid-2028. BPCL has already spent about $2.8 billion and is financing the operation with a consortium of eight to nine lenders, at interest rates ranging from 6% to 9%.
The Indian company has signed an agreement to purchase one million tonnes of liquefied natural gas a year for India. It wants to conclude commercial contracts for all these volumes over the next two or three quarters.
The first phase includes two liquefaction trains with a combined capacity of 13 million tonnes a year. BPCL holds a 10% stake in the project, equivalent to about 1.3 million tonnes a year, which could rise to 4.2 to 4.5 million tonnes with future expansions.
