Bharat Petroleum Corporation (BPCL) has tied up a 15 year long term contract for 1 million tonne per annum (mtpa) LNG from its much awaited Mozambique project. BPCL owns 10% in the 12.88 mtpa project offshore the Mozambique basin where OVL and Oil India are the other consortium partners, while French energy giant Total is the operator.
N Vijayagopal, director — finance of BPCL, told media in a post AGM conference call that the production from one of the largest gas resources in Africa is expected to start from the second half of calendar year 2024, while the full production is expected by 2025.
“We have a total requirement of 1 plus mtpa of gas as of now and we plan to grow it to 2 mtpa this year. The 1 mtpa gas we will get from Mozambique will be very beneficial for us. Also, since our contract with Qatar will get over in 2027 it will help to compensate for that. Logistics wise also, it is closer to other locations as it is just across the Indian Ocean.”
Other consortium partners have also tied up long term contracts with customers for close to 11.5 mtpa of LNG, however, the names cannot be disclosed due to non-disclosure agreements, he said.
The consortium partners have also completed the financial closure for the project and raised around $15 billion of the debt for a project of $24 billion size. US Exim Bank has contributed close to $4 billion, Vijayagopal said.