New Delhi: Bharat Petroleum Corporation Limited (BPCL) plans to invest an additional $1.8 billion in its Mozambique gas project over the next two years, taking its total investment, including exploration, to approximately $4.5–4.6 billion. The investment will support the project’s development as the company seeks to strengthen its upstream portfolio and secure long-term natural gas supplies.
As of September 2026, the project was 47% complete, with gas production expected to begin by mid-2028. V. R. K. Gupta, Director (Finance) at BPCL, confirmed the timeline, stating, “We are expecting gas production by mid-2028.”
The project is a significant part of BPCL’s international energy strategy, aimed at expanding its overseas assets and diversifying its natural gas supply sources.
BPCL Advances Mozambique Gas Project with $1.8 Billion Investment
BPCL has already invested approximately $2.8 billion in the Mozambique project. The proposed additional investment of $1.8 billion over the next two years will take the company’s total investment to around $4.5–4.6 billion, including exploration expenditure.
The development is being financed by a consortium of eight to nine lenders, with interest rates ranging from 6% to 9%, depending on the lender and financing terms.
The investment reflects BPCL’s continued focus on developing international energy assets and strengthening its position in the upstream oil and gas sector. The company expects the Mozambique project to contribute to its long-term natural gas supply strategy once production begins.
BPCL Targets Marketing of 1 Million Tonnes of Natural Gas Annually
BPCL has signed a sale and purchase agreement to bring 1 million tonnes per annum (mtpa) of natural gas from Mozambique to India. The company has also started marketing these volumes to prospective customers.
According to Gupta, BPCL expects to complete marketing agreements for the entire 1 mtpa over the next two to three quarters. Securing customers ahead of production is an important step towards establishing a reliable commercial framework for the project’s output.
The first phase of the Mozambique development will include two liquefaction trains with a combined capacity of 13 mtpa.
BPCL holds a 10% stake in the project, corresponding to an expected entitlement of approximately 1.3 mtpa from the initial phase. Depending on the performance and outcome of the first phase, the development could be expanded through additional liquefaction trains.
With further expansion, BPCL’s share of gas production could increase to approximately 4.2–4.5 mtpa, potentially strengthening its access to international natural gas supplies.
BPCL’s Brazil Oil and Gas Project Progresses as Scheduled
Alongside its investment in Mozambique, BPCL is advancing its upstream oil and gas project in Brazil.
The company’s BM-C-11 project is progressing as scheduled following the award of a tender for a floating production, storage and offloading (FPSO) vessel in mid-2026.
An FPSO vessel is used to process and store oil and gas produced offshore before transferring the output to tankers or other transportation systems.
The progress of the Brazil project complements BPCL’s Mozambique investment and supports its broader strategy of expanding its international exploration and production portfolio.
BPCL Maintains ₹25,000 Crore Capital Expenditure Target for FY27
BPCL continues to advance its broader capital expenditure programme, with a target of ₹25,000 crore for the financial year 2026–27.
According to the reported figures, the company spent ₹13,749 crore during the first half of FY27, including ₹9,300 crore in the September quarter.
Gupta indicated that total capital expenditure could slightly exceed the annual target, depending on the progress of ongoing projects.
The planned spending reflects BPCL’s investment commitments across its business operations, including international energy projects. The Mozambique development remains a key component of its efforts to expand its upstream presence and strengthen long-term energy supply security.
About Bharat Petroleum Corporation Limited (BPCL)
Bharat Petroleum Corporation Limited (BPCL) is a Maharatna public sector undertaking under the Ministry of Petroleum and Natural Gas, Government of India. The company operates across the petroleum value chain, including refining, fuel marketing and distribution, and natural gas-related businesses. Through domestic and international investments, BPCL aims to strengthen its energy portfolio, diversify supply sources and support India’s long-term energy security.
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