Mozambique LNG project to resume this year, says BPCL CMD, after terror attacks forced suspension

New Delhi: A TotalEnergies-operated liquified natural gas (LNG) project in Mozambique, in which Indian oil companies have a 30% stake, is set to resume operations in 2024, said G. Krishnakumar, chairman and managing director (CMD) of Bharat Petroleum Corp. Ltd (BPCL).

BPCL is the parent of one of the Indian companies with a stake in the project.

Addressing shareholders at BPCL’s annual general meeting, the CMD said that the company is making efforts to monetize the project at the earliest.

Project operator TotalEnergies is of the view that the future of the project is dependent on the outcome of the Mozambican presidential elections on 9 October.

Also read | India’s wait for Mozambique LNG gets longer, at stake $8 bn investment

On 27 August, Mint reported that India would have to wait longer for LNG supplies from the marquee $20 billion Mozambique project, with any progress expected only after a new government is formed in the East African country following presidential elections.

“The initial 2-Train LNG Project in Area 1, Mozambique, which is the first step towards unlocking the world-class gas resources of approximately 63 trillion cubic feet in which your company holds a 10% stake is set to resume operations this year,” Krishnakumar told shareholders.

Three Indian state-run companies hold a total of 30% in the project. ONGC Videsh holds 16%; BPRL Ventures Mozambique BV, a subsidiary of BPCL, 10%; and Oil India Ltd 4%. Total E&P Mozambique Area 1 Limitada, a subsidiary of TotalEnergies, holds 26.5% in the plant and is its operator.

Operations at the ‘Offshore Area 1’ project in the coastal town of Palma were suspended in April 2021, following attacks by Islamic State terrorists.

Also read | Mozambique gas field restart is win for India

“The company will maintain its focus and efforts on upstream oil and gas projects, particularly to expedite the earliest possible monetization of discoveries in Mozambique and Brazil,” the CMD said.

Krishnakumar also said that the BM-SEAL-11 project in Brazil and the Ruwais field in the UAE are currently in key stages of development.

Speaking of ‘Project Aspire’, BPCL’s five-year strategic framework that is based on two fundamental pillars, he noted that it would involve a capex of ₹1.7 trillion, including ₹75,000 crore for refineries and petrochemicals.

Shares of BPCL on Friday closed at ₹357.35, higher by 0.25% from its previous close.