The Indian oil company BPCL, which holds a 10 per cent stake in the Mozambique LNG Project, led by the French multinational Total Energies, has announced that the production of liquefied natural gas may restart in the first half of next year.
“Now, with the efforts of the Mozambican Government, supported by a regional coalition, progress is being made in improving the security situation in the region, and the project will resume as soon as the security situation is stabilized in a sustainable manner”, BPCL managing director, Arun Singh, said on Monday, quoted by the Indian newspaper “Financial Express”.
The director, who was speaking at the company’s annual general meeting, announced that BPCL is expected to invest a further 1.8 billion US dollars over the next three or four years in Mozambique.
BPCL has a purchase and sale agreement valid for a period of 15 years for one million tonnes of LNG.
The project, which is being implemented in Palma district, in the northern province of Cabo Delgado, was stopped in March last year following a terrorist attack against Palma town that caused the deaths of several dozen people and forced many thousands more to seek shelter in safer locations.
The attack prompted Total Energies to declare “force majeure.”
Since then, the Mozambican defence and security forces, with the backing of their allies from Rwanda, have reasserted government control over Palma and the neighbouring district of Mocimboa da Praia.
The Mozambique LNG project consists of the installation of a plant with an annual capacity to produce 12.88 million metric tons of LNG per year.
Total Energies is the operator of the Mozambique LNG Project, with a 26.5 per cent stake. Its partners in the consortium are Mitsui of Japan, with 20 per cent, Mozambique’s own National Hydrocarbon Company (ENH) with 15 percent, PRTTEP of Thailand with 8.5 per cent, and three Indian companies, ONGC Videsh Rovuma Limited, Beas Rovuma Energy Mozambique Limited, BPRL Ventures Mozambique, with 10 per cent each.
BPRL Ventures Bharat Gas Resources Ltd. is a wholly owned subsidiary of the Indian company Bharat Petroleum Corporation Ltd.
