Bharat Petroleum Corporation Ltd (BPCL) expects receiving gas from the Mozambique project by early to mid-2029 if the liquefied natural gas (LNG) project resumes operations this calendar year, chairman and managing director G Krishnakumar has told Moneycontrol.

“There was a force majeure in Mozambique. We are hopeful that it will resume but the operator is also waiting Exim Bank loan to be sanctioned. So, once that is done, we are hopeful that this year (2025)— by the middle or end of this year—it will resume and gas will start coming by early or middle of 2029,” he said.

Earlier this month, the CEO of TotalEnergies, the lead operator of the $20-billion project, said financing from the US Export-Import Bank (EXIM) Bank is expected to be approved soon, following which the force majeure on the LNG project would be lifted.

TotalEnergies halted the LNG project in 2021 following attacks by Islamic State terrorists.

Three Indian oil companies — ONGC Videsh, BPCL and Oil India — together hold a 30 percent stake in the Mozambique or the Rovuma Area-1 Offshore Mozambique project, one of the largest natural gas discoveries in recent times. BPCL has a 10 percent share in the project.

Krishnakumar said LNG supplies from the project would begin from 2029. The completion deadline has been pushed to 2029 from 2027 amid unrest in the northern Cabo Delgado region, which is close to the project site.

Talking about the demand in the domestic market, Krishnakumar said petrol and diesel consumption is set to rise in the coming years. Petrol consumption is expected to see a demand uptick of 6-7 percent year-on-year (YoY) and diesel will grow steady at 1.5 percent on year, he added.

Source: Moneycontrol

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