MOZAMBIQUE · GAS
Key Facts
- The country Mozambique is a southern African nation led since January 2025 by President Daniel Chapo, with some of the largest natural gas reserves in Africa.
- What happened Bharat Petroleum’s finance director said after the quarterly results that it plans another US$1.8 billion, reported on 29 October 2026.
- The stake The company owns 10% of Offshore Area 1 in the Rovuma Basin through a subsidiary, in a TotalEnergies-operated project at Afungi.
- The money The new US$1.8 billion would take the company’s total investment, including exploration, to between US$4.5 billion and US$4.6 billion.
- The schedule Finance director Gupta expects gas production by mid-2028, while TotalEnergies, the operator, has named 2029 for its first train.
- Approval No board or government approval for the new US$1.8 billion appears in the company’s stock exchange filings through 28 October.
- Still open Bharat Petroleum has contracted 1 million tonnes a year of Mozambican gas for India, but marketing tie-ups for that volume are still to come.
Bharat Petroleum, India’s state-owned refiner, plans another US$1.8 billion for a giant gas project in Cabo Delgado Province in northern Mozambique. Finance director V R K Gupta said the money would be spent over the next couple of years, with gas production expected by mid-2028.
The company, known in India as BPCL, owns 10% of the project through a subsidiary. For American readers the plant matters because it would add up to 13 million tonnes a year of liquefied natural gas for Asian buyers.
What the Company Said About the Money
Gupta said the company expects to invest another US$1.8 billion in the Mozambique project over the next couple of years. That would take its total investment, including exploration, to between US$4.5 billion and US$4.6 billion.
Net profit for the July to September quarter fell about 21% to 4,863 crore rupees (about US$510 million at 95.3 rupees per dollar). Losses on petrol, diesel and cooking gas sales outweighed stronger refining margins, according to the company.
Where the Project Stands in Cabo Delgado
The project is Mozambique LNG, built at Afungi on the coast of Cabo Delgado Province, with TotalEnergies of France as operator. Work stopped in 2021 after an insurgent attack nearby, the force majeure was lifted in November 2025, and construction restarted in January 2026.
BPCL said in May that the plant was about 42% complete. TotalEnergies chief executive Patrick Pouyanné put progress at roughly 45% in early August and kept 2029 as the target for the first train.
The two dates differ because Gupta spoke of gas production by mid-2028, while the operator speaks of the first liquefaction train in 2029. Pouyanné also gave the project cost as US$20 billion, shared among all the partners in the licence.
How Bharat Petroleum Pays for Its Share
The company’s own filing shows that its share of the project has been restructured this year. About 7,805 crore rupees (about US$819 million) of project assets moved out of capital work in progress and into equity-accounted investments.
Capital spending is budgeted at 25,000 crore rupees (about US$2.62 billion) this year, with 13,749 crore rupees (about US$1.44 billion) spent by September. Revenue rose about 30% to 1.58 lakh crore rupees (about US$16.6 billion), so the Mozambique money is large but manageable.
The Gas Bharat Petroleum Wants to Ship Home
The first phase has two liquefaction trains with a combined capacity of 13 million tonnes a year. The 10% stake gives Bharat Petroleum about 1.3 million tonnes, and a sale agreement covers 1 million tonnes a year for India.
Gupta said marketing tie-ups for the full 1 million tonnes should follow within two to three quarters. If more trains are built, he said the company’s share of output could rise to between 4.2 and 4.5 million tonnes a year.
Why Security Still Shapes the Timeline
Cabo Delgado has faced an Islamist insurgency since 2017, and it halted the project for almost five years. The Rio Times Mozambique explainer describes the gas bet and the insurgency that surrounds it.
Civilians were still being killed near the site when the work restarted, as the report on TotalEnergies restarting Mozambique gas shows. Any new attack near Afungi would be the largest single threat to the 2028 and 2029 targets.
What It Means for US Readers
American gas exporters in Louisiana and Texas sell to the same Asian buyers, and India is a fast growing market. A long contract for Mozambican cargoes means one more supplier competing for those customers from the end of this decade.
Investors in TotalEnergies, which trades in New York, follow the schedule closely because delays raise costs for every partner. The government of Mozambique earns little so far from gas, as the report on gas revenue and debt shows.
What Is Not Known
No board or government approval for the US$1.8 billion appears in the company’s stock exchange filings through 28 October. The price Bharat Petroleum will pay for the gas has not been disclosed.
The gap between mid-2028 for gas and 2029 for the first train has not been explained, and the amount already spent has not been given. It is also unclear whether ONGC Videsh, with 16%, and Oil India, with 4%, will make similar commitments.
More: Mozambique news in English, every day from The Rio Times.
Frequently Asked Questions
How much more will Bharat Petroleum invest in Mozambique?
The company plans to invest another US$1.8 billion over the next couple of years, its finance director said. That would lift its total to between US$4.5 billion and US$4.6 billion, including exploration.
Which project is Bharat Petroleum investing in?
It is Mozambique LNG in Offshore Area 1 of the Rovuma Basin, built at Afungi in Cabo Delgado Province. TotalEnergies operates it, and Bharat Petroleum holds 10% through its subsidiary Bharat PetroResources.
When will the gas start flowing?
Bharat Petroleum’s finance director expects gas production by mid-2028. TotalEnergies has named 2029 as the target for the first liquefaction train.
How much gas has Bharat Petroleum contracted?
It has signed a sale and purchase agreement for 1 million tonnes a year of liquefied natural gas for India. Its 10% stake gives it a right to about 1.3 million tonnes a year from the first phase.
Why does this matter for the United States?
US exporters of liquefied natural gas compete with Mozambique for buyers in India and the rest of Asia. TotalEnergies shareholders in the United States also depend on the project staying on schedule.
Sources: Bharat Petroleum Corporation Limited, unaudited results for the quarter ended 30 September 2026 (stock exchange filing), 23 October 2026; TotalEnergies, second-quarter 2026 results presentation, 29 July 2026.
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