Mumbai, October 27 (Monday): Shares of Bharat Petroleum Corporation Ltd (BPCL) rose 1.60% to ₹335.75 in early trade after TotalEnergies and its partners lifted the force majeure on the long-delayed Mozambique LNG project. The stock gained ₹5.30 from its previous close of ₹330.45, taking BPCL’s market capitalization to ₹1.46 trillion on the NSE.
The French energy major TotalEnergies announced that it has resumed work on the $20 billion liquefied natural gas (LNG) project in Mozambique, which was halted in 2021 following a terrorist attack in the Cabo Delgado province. The decision to lift the force majeure signals improved security conditions in the region and marks a major step toward restarting one of Africa’s largest energy projects.
Key stakeholdings and significance for Indian companies
The Mozambique LNG project is a critical asset for several Indian energy companies:
- BPCL: 10% stake
- ONGC: 16% stake
- Oil India: 4% stake
The lifting of force majeure is expected to positively impact these firms, as it revives prospects for future LNG supply, revenue flow, and potential valuation gains from their investments.
Project updates and timeline
TotalEnergies informed Mozambique’s government that it has requested approval for an additional $4.5 billion in project costs and a four-and-a-half-year extension to the timeline. Under the revised schedule, first LNG shipments are expected in the first half of 2029, compared with the earlier target of July 2024.
The project, with a planned capacity of 43 million tons of LNG per year, is being developed in partnership with Japan’s Mitsui & Co. and Mozambique’s national energy company ENH, and has received financial backing from multiple international lenders, including the US government.
Broader impact
The resumption of the Mozambique LNG project strengthens India’s energy security outlook by diversifying LNG sourcing channels. It also underscores the government’s strategic push toward securing long-term energy assets overseas through PSUs like BPCL, ONGC, and Oil India.
Stock Update:
- Current Price: ₹335.75
- Change: +1.60% (+₹5.30)
- Market Cap: ₹1.46 trillion
- Day Range: ₹331.25 – ₹336.45
- Year Range: ₹234.01 – ₹358.65
- P/E Ratio: 8.26
- Dividend Yield: 2.98%
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