ONGC Videsh Ltd (OVL) announced on Wednesday that the force majeure on its $20 billion Mozambique LNG project has been lifted, paving the way for the resumption of construction work. This force majeure was initially declared in 2021 after the project faced security threats from Islamic State-linked terrorist attacks.
The lifting of this force majeure is critical for both the project and India’s energy landscape. By facilitating the supply of liquefied natural gas (LNG) to India, it enhances the nation’s energy security. The Mozambique LNG project is being developed by a consortium of Indian state-run companies, holding a combined 30% stake. OVL retains a 16% interest, while BPCL’s subsidiary BPRL Ventures Mozambique BV holds 10% and Oil India Ltd owns 4%. The operator of the facility, TotalEnergies, controls 26.5% through its subsidiary, Total E&P Mozambique Area 1 Limitada.
In a statement, OVL highlighted improvements in the security situation in Cabo Delgado Province, where the LNG project is located. The consortium informed the Mozambican government about the decision to end the force majeure, which was implemented on May 11, 2021. “The withdrawal of the force majeure enables construction activities to restart for early completion of the project,” OVL stated. Work at the Offshore Area 1 project, located in the coastal town of Palma, had originally commenced in 2019 but was halted following the security disturbances.
In August, Bharat Petroleum Corp. Ltd (BPCL) Chairman and Managing Director Sanjay Khanna announced that the company has secured rights to market LNG from this newly revived project. During BPCL’s annual general meeting, Khanna remarked, “While security concerns had delayed the project, conditions have improved now, and full-scale development is expected to resume soon.” He added that once operational, the two-train LNG project would not only bolster BPCL’s upstream operations but also support the broader energy transition initiative. With a 10% participating interest in the project, BPCL is well-positioned to capitalize on the impending revival.
The timing of this development is notably crucial for India, which has been actively working to ensure its energy security amid a complex geopolitical landscape. Currently, India imports about 55% of its natural gas needs and aims to raise the share of gas in its total energy mix from 6% to 15% by 2030. The Mozambique project promises to make LNG supplies more accessible to India, where shipments can reach ports in three to seven days, significantly quicker than those from the U.S., which takes between 25 to 50 days.
As the demand for natural gas in India is expected to grow-especially with the expansion of city gas distribution networks-an International Energy Agency (IEA) report from February projected a nearly 60% increase in India’s natural gas consumption by 2030. This surge could place India’s gas demand alongside that of some of the world’s largest consumers, highlighting the vital role that projects like the Mozambique LNG venture will play in India’s energy future.
The lifting of the force majeure not only signifies a new chapter for the Mozambique LNG project but also reflects India’s ongoing efforts to bolster its energy infrastructure and security in an unpredictable global environment.
Original Source: https://www.livemint.com/news/construction-mozambique-lng-project-set-to-resume-india-ongc-videsh-ovl-force-majeure-ends-11762962975749.html
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Publish Date: 2025-11-12 23:42:00
