India’s state-run Bharat Petroleum Corporation Ltd (BPCL) will invest another US$1.8 billion in its Mozambique gas project over the next couple of years, taking its total investment, including exploration, to US$4.5–4.6 billion, a senior company executive said.
The project was 47% complete as of September 2026, with gas production expected to begin by mid-2028.
“We are expecting gas production by mid-2028,” BPCL director (finance) V. R. K. Gupta said.
The company has already spent around $2.8 billion on the project, which is a key part of its strategy to strengthen its upstream portfolio and secure long-term natural gas supplies, he said. The project 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.
BPCL has signed a sale and purchase agreement to bring 1 million tonnes per annum (mtpa) of gas from Mozambique to India and has begun marketing the volumes to prospective customers. The company expects to complete marketing tie-ups for the entire 1 mtpa over the next two to three quarters, Gupta said.
The first phase of the project involves two liquefaction trains with a combined capacity of 13 mtpa. BPCL holds a 10% stake, translating into an expected entitlement of around 1.3 mtpa from the initial phase. Additional liquefaction trains could be developed depending on the outcome of the initial phase. With further development, BPCL’s share of gas production could rise to 4.2-4.5 mtpa, Gupta said. BPCL is also pursuing an upstream project in Brazil. Its BM-C-11 project is progressing as scheduled following the award of the tender for a floating production, storage and offloading (FPSO) vessel in mid-2026.
The company’s broader capital expenditure programme remains on track, with a target of Rs 25,000 crore for the current financial year. BPCL spent Rs 13,749 crore in the first half of FY27, including Rs 9,300 crore in the September quarter. Capital expenditure could exceed the annual target slightly, depending on project progress, Gupta said.
Last week, BPCL reported a 21.45% year-on-year decline in consolidated net profit to Rs 4,863 crore for the September quarter, as higher refining margins were offset by losses on the sale of petrol, diesel and liquefied petroleum gas (LPG). The company had reported a profit of Rs 6,191.49 crore in the year-earlier period.
Consolidated revenue from operations rose 29.7% to Rs 1.57 lakh crore from Rs 1.21 lakh crore a year earlier. Consolidated total expenses stood at around Rs 1.52 lakh crore in Q2 FY27, compared with Rs 1.15 lakh crore in the year-earlier quarter and Rs 1.66 lakh crore in Q1 FY27. The lower profit in April-September 2026 was mainly due to subdued marketing margins on certain petroleum products, partly offset by higher refining margins.
