India’s state-run oil company, Bharat Petroleum Corporation (BPCL), will off-take 1 million tonnes per annum (Mtpa) of liquefied natural gas (LNG) from the Mozambique LNG project, Kallanish Energy learns.
BPCL’s financial director Neelakantapillai Vijayagopal told the media after a conference call this week that the company has signed a 15-year supply contract with the African project. BPCL owns a 10% stake in the Total-led project.
He didn’t disclose financial terms of the long-term agreement, but said the volume will be helpful to complement its demand needs, particularly after its contract with Qatar expires in 2027.
“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,” he said. “The 1 Mtpa gas we will get from Mozambique will be very beneficial for us.”
Another benefit described by Vijayagopal was the logistics, as Mozambique “is just across the Indian Ocean.”
The executive also said that 11.5 Mtpa of the 12.88 Mtpa plant’s capacity has already been contracted. Production is set to start in the first train in the second half of 2024, ramping up to full production commissioning in 2025.