Bharat Petroleum Corporation (BPCL) has signed off a 15-year long term contract for 1 million tonnes per year (mmt/y) of liquefied natural gas (LNG) from its highly anticipated Mozambique project, according to The Financial Express.

Shri Vijayagopal, finance director of BPCL, said, “We have a total requirement of 1 plus mmt/y of gas as of now and we plan to grow it to 2 mmt/y this year. The 1 mmt/y gas we will get from Mozambique will be very beneficial for us. Also, since our contract with Qatar will get over in 2027 it will help to compensate for that. Logistics wise also, it is closer to other locations as it is just across the Indian Ocean.”

BPCL owns 10% in the 12.88 mmt/y project offshore the Mozambique basin and its other partners include OVL, Oil India, and Total.

The consortium partners have also completed the financial closure for the project and raised around $15 billion of the debt for a project worth $24 billion. US Exim Bank has contributed close to $4 billion, according to Vijayagopal.

Full production is expected in Mozambique by 2025.