India’s Bharat Petroleum Corporation Limited (BPCL) is preparing to invest a further $1.8 billion in the Mozambique LNG development, deepening its commitment to one of Africa’s largest natural gas projects and reinforcing New Delhi’s wider strategy of securing long-term overseas energy supplies.

The planned investment was disclosed by BPCL Chief Financial Officer Vetsa Rama Krishna Gupta during a conference call following the company’s second-quarter results for FY2026-27.

BPCL has already invested around $2.8 billion in the project. With the additional capital earmarked over the coming years, the company’s total exposure, including exploration expenditure, is expected to reach approximately $4.5 billion to $4.6 billion.

The Indian energy major owns a 10% stake in the Mozambique LNG project, which is located in the prolific Rovuma Basin in northern Mozambique. The development is operated by TotalEnergies, which holds a 26.5% participating interest. Other stakeholders include Japan’s Mitsui, Mozambique’s state-owned ENH, as well as several Indian, Thai and Japanese partners.

The project suffered a major setback in 2021 when escalating security concerns in Cabo Delgado province forced the consortium to declare force majeure and suspend development activities.

Following improvements in the security situation, the force majeure declaration was lifted in November 2025. TotalEnergies and the Mozambican government subsequently announced the restart of both onshore and offshore construction activities in January 2026.

BPCL said the project had reached 47% completion by September 2026, marking significant progress since construction resumed.

The first phase of the development includes two LNG liquefaction trains with a combined production capacity of 13 million tons per year. Industry projections indicate that BPCL’s 10% holding could translate into roughly 1.3 million tons per annum of LNG entitlement from the initial phase.

To monetise part of its share, BPCL has already secured an agreement to purchase one million tons of LNG annually for the Indian market. The company has begun marketing these volumes to prospective customers and expects to conclude commercial arrangements within the next two to three quarters.

Gupta told analysts that BPCL expects gas availability around mid-2028, stating, “We are expecting gas production by mid-2028.”

However, there remains a difference in projected timelines. TotalEnergies has previously indicated that the project’s first LNG production is expected in 2029, suggesting that final commissioning schedules could still evolve as construction advances.

The project is supported by a consortium of international lenders and remains a key element of BPCL’s strategy to expand its upstream portfolio while ensuring reliable long-term gas supplies for India’s growing energy market.

The additional commitment also aligns with India’s broader energy security agenda. The Ministry of Petroleum and Natural Gas has consistently encouraged state-owned energy companies to acquire strategic overseas hydrocarbon assets in order to diversify supply sources and reduce dependence on a limited number of exporting nations.

Several Indian energy firms have pursued similar initiatives. In 2025, Indian Oil Corporation signed a 14-year agreement with ADNOC for the annual purchase of 1.2 million tons of LNG, while ONGC Videsh and its partners continued expanding investments across international oil and gas assets.

India’s efforts to widen its global energy footprint have already produced tangible results. Government data released in July 2025 showed that the number of countries supplying energy to India had increased from 27 to 40 over the previous two decades, reflecting a deliberate strategy aimed at enhancing resilience, supply security and diversification.

For BPCL, the Mozambique LNG project remains one of its most significant overseas investments, offering long-term access to substantial gas reserves while supporting India’s transition towards a more diversified and secure energy mix.

Agencies