India increases investment in Mozambique LNG project

India’s Bharat Petroleum Corporation Limited (BPCL) has announced an additional investment of 1.8 billion dollars in the Mozambique LNG project, bringing its total investment in the project to between 4.5 and 4.6 billion dollars. This includes previous investments in exploration and development.

BPCL’s stake and project partners

BPCL holds a 10% stake in the Mozambique LNG project, which is located in the Rovuma basin in northern Mozambique. The project is operated by TotalEnergies, which owns 26.5% of the consortium, with other partners including Mitsui, the Mozambican state-owned ENH, and other Indian, Thai, and Japanese companies.

Project interruptions and resumption

The development of the project was paused in 2021 due to insecurity in Cabo Delgado, northern Mozambique, which led the consortium to declare force majeure. This was lifted in November 2025, and work resumed in January 2026, with land and sea operations restarting.

Progress and production timeline

As of September 2026, the project had reached 47% completion, according to BPCL. The first phase of the project includes two liquefaction trains that will produce 13 million tons of liquefied natural gas (LNG) annually. BPCL plans to market part of this output, having signed a contract to supply one million tons of LNG per year to India.

Supply timeline and commercial efforts

BPCL expects the LNG to reach India around the middle of 2028. TotalEnergies, the project operator, has stated that the first production of LNG is expected in 2029. BPCL has begun offering these volumes to potential customers and aims to finalize commercial agreements within the next two to three quarters.

India’s energy diversification strategy

The investment by BPCL aligns with India’s broader strategy to diversify its energy sources and reduce reliance on a limited number of suppliers. The Indian Ministry of Petroleum and Natural Gas encourages state-owned companies to acquire foreign oil and gas assets to enhance supply security.

Other Indian energy initiatives

This strategy is reflected in other initiatives, such as Indian Oil Corporation’s 2025 contract with ADNOC for 1.2 million tons of LNG annually over 14 years. ONGC Videsh and its partners have also continued investing in foreign oil and gas assets. In July 2025, the Indian government noted that the number of countries supplying India with energy had increased from 27 to 40 over two decades.