BPCL expects full-scale development to resume soon at Mozambique LNG project: CMD PSU Watch
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BPCL expects full-scale development to resume soon at Mozambique LNG project: CMD

BPCL says Mozambique LNG project to resume soon; Brazil, Indonesia assets advance as it plans Andhra refinery, green hydrogen, biofuels

Shalini Sharma

New Delhi: Bharat Petroleum Corporation Ltd (BPCL) on Monday said it expects full-scale development to resume soon at the Mozambique LNG project, where it holds a 10 percent stake, as the security situation in the region has improved.

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At the company’s 72nd Annual General Meeting, Chairman and Managing Director Sanjay Khanna said: “While security concerns had delayed the project, conditions have improved now, and full-scale development is expected to resume soon. Once operational, the two-train LNG project will boost our upstream presence and support the energy transition.”

BPCL also reported progress on its other overseas oil and gas assets. “In Brazil, BM-SEAL-11 has moved into the tendering stage for the Floating Production Storage & Offloading (FPSO) vessel and other long-lead items. At our Nunukan asset in Indonesia, the Plan of Development has received regulatory approval, paving the way for the project’s development,” Khanna told shareholders.

Greenfield refinery in Andhra Pradesh under evaluation

Khanna announced that BPCL is evaluating a new refinery-cum-petrochemical complex near Ramayapatnam Port in Andhra Pradesh, with pre-project activities already underway. The proposed greenfield facility is aimed at further expanding the company’s petrochemicals portfolio and providing a hedge against long-term volatility in fuels.

Petrochemicals: Mega projects on track

Two large petrochemical projects at Bina and Kochi, with a combined capital outlay of Rs 54,000 crore, are progressing on schedule. To fund the Bina expansion, BPCL has tied up a Rs 31,802 crore loan with an SBI-led consortium, the largest loan in its history.

Renewable energy and green hydrogen

The company reaffirmed its target to build 10 GW of renewable energy capacity by 2035. BPCL has set up a joint venture with Sembcorp Green Hydrogen India Pvt Ltd to pursue large-scale opportunities in renewables and green hydrogen. A 5 MW electrolyser has been commissioned at Bina refinery, while a green hydrogen refueling station at Kochi, in partnership with Cochin International Airport Ltd, is ready for commissioning. BPCL is also piloting hydrogen mobility applications ranging from buses to VTOL aircraft.

Biofuels: Ethanol blending nears 20%

BPCL said its ethanol blending rate reached 16.35 percent in FY25 and has already neared 20 percent this month, ahead of the national target deadline of 2025-26. The company is also scaling up compressed biogas (CBG) initiatives, with 10 plants already commissioned and 25 more planned. It has formed a JV with GPS Renewables and is setting up another with Praj Industries for CBG expansion.

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